Automatic Investment Plan kicked in. Just like before, my picks went up a bit and my purchased shares were smaller by a few fractions. Again, no big deal.
Here's what my $300 did today:
Fees: $8 ($4 per stock transaction)
GLD = 1.1232 shares @ $174.49
WM = 3.0625 shares @ $31.35
Here's my current portfolio allocation:
AAPL = 38.3%
LULU = 18.3%
GLD = 16.6%
XLNX = 9.0%
ETP = 7.9%
WM = 7.1%
cash = 2.8%
As mentioned in previous posts, I outperformed the market mainly because of AAPL. In the near future, I would like to rely less on AAPL and spread out my portfolio gains across the board either by having more LULU and GLD or adding new positions. I think AAPL should be around 15-20% of my portfolio and be big enough to make a dent in my gains but not too big that I crash and burn when they are down a quarter or two. I came up with this thesis in light of the death of Steve Jobs. Even though his death was already priced in with the stock price, you can never doubt that his vision was a huge part of what made Apple great. However, I am still bullish on Apple. My bullishness was reinforced after reading Walter Isaacson's Steve Jobs Biography. It highlight how the top management of Apple fought with Steve Jobs on some directions of the business which was beneficial for Apple. It detailed how Tim Cook controlled the supply chains, Phil Schiller suggested to Steve Jobs to port iTunes to Windows and how Jony Ive worked closely with Steve and produced beautiful and amazing products that even Steve Jobs loved. I think as long as the current management team is intact, AAPL still has a bright future ahead of them.
I would also like to add more dividend paying stocks. I think this will help my portfolio grow just by waiting and doubling down on great dividend paying stocks.
Speaking of dividends, WM just announced their cash dividend. It will pay $0.34 per share payable on December 16, 2011. I still have until November 30, 2011 (Ex-Dividend Date) to buy more if I want to get in more dividends. This dividend pay out would bring WM's yield to 4.30%. Not bad right? This is my way of making another man's into money in my pocket.
ETP will be paying out dividends on November 13, 2011. They will pay $0.89375 per share. This will bring ETP's yield to 7.78%. Again, not bad. XLNX will be paying $0.19 on November 30, 2011. XLNX's yield will be 2.31%. Not bad... not great. I will have to review my thesis for XLNX. Perhaps there may be other stocks that pays a dividend and appreciates in price that would yield more for my money.
The other star performer in my portfolio, LULU will be huge within the next few months. They just announced a new online store for iviwa (Iviwa Athletica is a new sports apparel line target to young girls ages 6-12). Iviwa initially launched in 3 Canadian cities and now it will launch in the US via the online store. The timing is perfect because they just made it right before the holiday spending season and I believe the US market would be huge for Iviwa (I mean, just look at how many soccer moms are out there). Speaking of the US market, LULU has achieved a cult status in the US and it's even more popular in Canada. LULU enjoys brand loyalty in Canada as shown by their sales reports (Canada makes up almost 50% of their sales). Meanwhile, in the US, LULU is poised to reach critical mass if we take San Francisco, LA and New York as a barometer. Brand recognition and loyalty is high. I can verify this because every time I'm at the gym, all I see are LULU tank tops, yoga pants and sweats. I believe LULU will be the next Nike within the next few years. LULU not only is a great product to work out in but it is also a fashion statement for most consumers.
Anyway, I look forward into adding more LULU in my portfolio. Perhaps, it would help balance out the AAPL juggernaut.
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