Friday, November 19, 2021

Activity this week

Glancing over some of the activity this week, I realize there was a lot of movement in the Dividend Town portfolio.  I'll spend some more time this weekend detailing out some of trades, but overall I'm pretty happy with the first rebalancing efforts in the Financial and Consumer Discretionary sectors. 

Investing the time to create a comprehensive screener was worth the effort. While by no means perfect, being able to blend multiple sources of trusted data creates some friction in your thought process and assumptions. You start looking at some of your prior choices and start to question yourself.

For example, take a snippet of the Dividend Town screener below. When I looked at my initial Finance sector purchases, the first question is why didn't they pass the initial pass of my screener.  Does the company have a great yield but no growth?  Do they have good growth but huge debt?  Is there a concern about their quality relative to other sector picks?  As you keep digging and asking more questions, you come to the realization that just like your teenage years, you realize that your choices weren't quite as optimal as you like.  

Unlike your teenage years, there's no reason to get attached to these relationships. We can identify the flaw in our original logic, find the best alternative and correct the action. We learn, adjust our process and models and move forward.  

This week I've also had some options activities, selling two covered calls and selling one short-term put. I've wanted to put some MAIN into the portfolio with extra cash, so I sold one $50 put earlier in the week due today. 

So this weekend I'll document all the trades this week, work on listing out the options activity, and hopefully get some time to start tweaking my energy sector. My energy screener is all oil & gas. Will the industry continue to look like that in 20 years?  Probably not, so it might help to put a broader lens on when researching companies here. Are there any alternative energy companies that pay dividends?  Are there any indexes that cover a blend of traditional and alternative companies?   



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