More Positions

Hi all.

Today, I'm just going to talk about a few of my positions and why they are good to buy.

FULL LIST OF POSITIONS

Precious Metals Stocks/ETFs:

Yamana Gold (AUY)

SPDR Gold ETF (GLD)

I AM GOLD (IAG)

Newmont Mining (NEM)

Southern Copper (SCCO)

Mkt Vectors Gold Miners (GDX)
Mkt Vectors Junior Gold Miners (GDXJ)

Silver ETF (SLV)

Gamco Natural Resources ,Gold ETF (GNT)
Silver Standard Resources (SSRI)
Silver Wheaton (SLW)

Here is a list of positions I am going to take in my portfolio. I think gold is in the start of a bull market after the correction from $1,900 to $1,500. Silver and other commodities are also well-positioned to make a new bull run, after their bear markets. Other commodities like corn and wheat, which have been holding strong over the past years due to bad weather conditions, are likely to do well along with other commodities. Therefore, looking at gold bouncing off its 50-day SMA as seen in the chart, I feel that it is timely to write a post like this. I expect to hold the aforementioned positions to next year or so after the indication that the commodity bull market is over. 

3 Biggest Positions: 

Berkshire Hathaway Cl. B (BRK.B)

Disney (DIS)

Exxon Mobil Corp. (XOM)

I would like good anchors for the portfolio as the portfolio contains a variety of other small-cap stocks, which are deemed more risky. Therefore, a few stable, widow-and-orphan stocks would be ideal.

Berkshire Hathaway Cl. B

STRONG BUY

Price Target: $95

Price Now: $88.51

Low Risk

Berkshire Hathaway is the company that Warren Buffett owns, and I have mentioned that I owned this stock since early this year, when I started this blog. It was trading around $80 then, and if it goes down to that area for any reason, I would definitely accumulate more shares. I have confidence in Warren Buffett's doings and beliefs, and I believe that it will do good for the company as a whole. Although Bershire pays no dividends, in my opinion, it may actually be better if the company keeps the money for other operations instead of giving it to shareholders. This is a five-star stock to me and is rated as a strong buy by me, with a $95 price target. 

Walt Disney Co. 

BUY

Price Target: $55

Price Now: $51.79

Low Risk

People love entertainment, and they cannot live without it. Can you imagine a world without movies and music? The answer is no. Therefore, for this reason alone, Disney will continue to thrive in the years to come. Additionally, Disney is a pretty diversified stock, not only focused on films and TV shows, it also owns theme parks and sells items to consumers. We do not know where else Disney will try to make money out of, but what we know for sure is that this continued expansion will benefit shareholders over the long term. At 17 times earnings now, it may be considered slightly overvalued but its long term prospects are very favorable, with no signs of it losing popularity anytime soon. Disney also offers a 1.16% dividend that I believe, will be grown in the future like how it has always grown them before. This is a five-star stock by my standards and is rated a buy by me, with a $55 target.

Exxon Mobil Corporation

STRONG BUY

Price Target: $99

Price Now: $92.19

Low Risk

Oil is a precious commodity, on high demand nowadays. With so many uses, Exxon Mobil's sales are bound to grow over the long term. Management is also prepared for growth as they plan to invest $37B in capital and exploration spending over the next 5 years and has many plans to expand further. Having operations in Bakken and other oil-rich areas will prove to be beneficial to the company over the long term. Additionally, management have been purchasing shares in the past 10 years. In 2002 it had 6.7B shares outstanding, and now it has only 4.6B shares outstanding, which is a good sign, as investors now own a bigger portion of the company with the same amount of shares. Along with the fact that the company company has very little long-term debt (LT Debt/Equity: 0.05), this proves that the company is earning enough to give so much back to the shareholders and still have enough funds to expand itself. It also pays a palatable 2.47% dividend. Therefore, this a five-star stock by my standards and is rated a strong buy by me, with a price target of $99. 

Happy Trading

Kang Wei