Bought more in my farm account today-paid 85.05/share. Increased my stake by 15% to 6.5% of the assets in this account.
I used cash generated from some tax loss selling to do the deal.
This account is 8% cash, 10% bonds and the balance in stocks. PM is ranked 4th behind BRK, LO and IBM which together makeup 44% of the assets in this account.
With today's purchase I congratulate PM on overtaking USB, AIG and COP in my top 10.
I did some tax loss selling today in my farm account selling both AG and GDX which offset about 8% of my yearly taxable gains. Due to my sell I predict that now is the time to buy. How many others are selling today to offset gains in others stocks as I'm doing?
I used 1/3 of this cash to buy more PM @ 85.05 per share, increasing my stake by 15% to 6.5% of the assets in this account.
I plan to sell fewer put options next year because premiums are too low and I'll buy more high dividend paying free cash flow generating machines like PM for 2014.
Per Charles Schwab-as of the close of trading yesterday, the S&P 500 is up 29.46% year to date-[this includes dividends], whereas my farm account is only up about 25%.
I'm short covered LO Dec 50 call options and also short 52.5 and 55 options for March and June, so I may have more cash to roll into both IBM and PM as of this Friday and again next spring.
My motto is to buy "LO" and sell call options high. PM certainly is "LO" but I'll just continue buying monthly with the cash I hold for selling cash secured put options in my IRAs.
All you have to do is place an order good tell cancelled/GTC and wait to see if it fills.
It also ties up your cash but some other stock may crash while you're waiting and you can always buy it instead.
I increased my stake in PM by 25% to 8% of the total assets in this account and I have more orders that may fill soon in other accounts if the price slide continues.
Grandma sold them so she could buy more stocks for dividend income which in her case is tax free.
Looking at several high paying dividend stocks for next year which could be bought next week for Christmas.
She sold these today-LORILLARD TOBAC 6.875%20 DUE 05/01/20 544152AB7
She bought them about 2-3 years ago and made 15% on her investment plus earned the stated interest.
20% of this cash was put in a 10 year CD with a 3.2% coupon and with a death put provision which the former bond did not have.
The balance will be invested in a dividend paying stocks because in her tax bracket, dividends are federally tax free whereas the interest on the bond she sold was taxable.
She owns 16 stocks and has 2-3 stock transactions per year but 70% of the time she'll keep a small stake in her original investment as a trophy. She also sells covered call options which is why her account is only up about 13% this year and makes it the worst performing account of all the accounts I manage for friends and family this year.
I'll post her current top 10 at year end.
Devaluation of the dollar over time due to the cost of wars, defense spending and Obama Socialism. And as the stock drops, PM' share repurchase plan becomes much more effective.
I've totaled the values of both my IRA and Roth IRA and listed the top 8 holdings so you'll have an opportunity to short them if you wish: #1-BRK--19%, #2-LO--11.7%, #3-IBM--11%, #4-PM--10%, #5-AIG--7.7%, #6-KO-- 6.2%, #7-INTC--3.8% and #8-STX--3.7%---total of top 8 = 73.1%
Note: I'm currently 20% cash which is used to sell put options.
These two accounts are collectively up 21% verses 28% for the S&P 500, so yes I'm having a bad year.
Correction-this was for Roth IRA #4. I post this info so I can keep track of my performance. If PM is worth more than 24% of my account six months from now I'll know that this investment worked out when compared to my other holdings.
PM now makes up 24% of the assets in what I call Roth IRA #4.