Hi everyone! This newsletter now has a name - POPPY SEEDS. Cute, right? Please remember to update the google sheet detail tab when you buy/sell something. I look at the revision history each month, so I can include your trade in this newsletter. The summary tab is at the bottom of this email as a picture, and the live link is here.
TL;DR - Invest, but with caution. Get feedback on your ideas from your aunts and uncles. Enjoy the stocks on sale!
“The stock market rallied sharply after the 1929 crash. Once investors took stock of economic conditions, the Dow fell 86% from its high.”
Poppy/Uncle Tom took the quote above from an article in the April 27th issue of Barron’s. On the downside, unemployment from the pandemic is predicted to be higher than it was during the depression. On the upside, there was no stimulus program, unemployment program, or Federal Reserve to stimulate business and spending during the great depression. With this in mind, the advice would be to invest cautiously and monitor frequently.
Poppy is still interested in researching stocks. He would be happy to talk about them. He invested last week in 4 companies (the links are to a Yahoo Finance stock quote):
- MRNA-Moderna Inc is a bio-med company working on a vaccine for Covid-19
- NVAX-Novavax is also working on a vaccine for Covid-19
- OKTA-Okta Inc is a software company that provides identity and access management to a company’s data in the cloud
- PROSY-Prosus is the largest internet company in Europe. These stocks look like solid, growing companies. Still, they had a relatively rapid and substantial run-up in price before they were purchased. These could be very volatile in the short term, but Poppy usually holds stocks for 20 years or more. Look more into these stocks to see why they could be attractive to Poppy, not as recommendations.
Assets to Consider
Several grandchildren have chosen to invest in Salesforce (CRM), Poppy owns Intel (INTC), Cisco (CSCO), Visa (V), and Apple (AAPL), and Nick and Kyla own PayPal (PYPL). These popular and profitable companies can be bought together in 1 ETF (Exchange traded fund). The fund trades under the symbol XLK; below are the top 10 holdings of the fund:
- Young Garrett bought Yeti (YETI), the expensive cooler company. It's up 36% since he bought it!
- (I think) Mikal Motorcycle bought Boeing (BA), but he still needs to update the sheet. I'm pretty sure it's been up nicely since he bought it.
- (I think) Antonio bought Microsoft (MSFT), but he still needs to update the sheet
- Annika, the Crombies, the Korzekwas, and Bryan are still sitting on the $1000 in cash. Poppy's investment recommendations are below if you need ideas!