November was another incredible month for stock investors. There have been a few of these this year! It’s great to recognize that incredible months and incredible years do happen, and that’s why being a stock investor is such a fantastic opportunity. It’s also smart to recognize (and be prepared for the reality) that not every month is incredible and some are downright painful. And that still, being a stock investor is a fantastic opportunity.
I have one large position, Amazon, because I think it’s the best balance of value and upside.
I have several small positions:
Kind of crazy, but Root was up 46% this month after being up 81% in October. Even crazier; it still isn’t particularly expensive. Target and DG and NU were down in November, so I initiated positions, because I think the value/upside balance is currently favorable for each. But I don’t feel so strongly that I’m willing to make any of these large positions.
I sold these in November for various reasons:
Robinhood was up 60% this month and now looks unreasonably expensive, to me. Castle’s earnings didn’t impress me. The other two are just kinda boring.
Another reason I sold Alphabet and Microsoft is that, yes, I got back into an index fund (which includes both). I’ve decided to be a little less active in stock investing for a while…taking a bit of a vacation from the intensity I’m used to putting into this. An index fund is a perfect way to go – I’m building a decent sized position and will continue to do so over the next few months, and this will be set and forget money that I don’t have to hold in cash or deploy into a stock position.
Through Thanksgiving this week, I’ve been reminded at how fortunate we are to be able to invest – to in a small way partner with companies that are doing amazing things. It’s a great opportunity and a great way to build wealth over the years.
Happy December to all!
Bear
