Dividend Ten

Freelance & personal finance journal

Recent Buy

Update on Fiverr Sale & Recent Buys

Yeah, so I listed my Fiverr business through Flippa, which netted a cool $24,000. Not a bad week’s work.

Meanwhile, I pulled around $12,000 into my HSA account for 2016 AND 2017, which if you don’t know is essentially is just another somewhat underutilized tax free vehicle for investments. Since HSA accounts can be rolled over every year (ie. you don’t lose the funds at the end of the year), and you don’t HAVE to use the funds for healthcare, it can be a sensible way to increase your tax sheltered investments, and can be pulled out later in life at an ordinary tax rate if not used for health expenses.

Since I’m investing in tax sheltered accounts that I won’t be using for 20+ years, I went a little hog wild today with my biggest conviction buys for growth for the long run purchasing the following:

– My #1 pick for the long run – AMZN – picking up an additional 7 shares at $901/ each, for a total of $6,316.15
– My very close 2nd pick for the long run – GOOGL – picking up an additional 3 shares at $839.33 each, for a total of $2,525.12
– My maybe 2nd or 3rd pick – FB – picking up an additional 11 shares at $139.60, for a total of $1,536.68.

I know, not very dividend-like picks from me, but in the accumulation phase I would argue that even pursuing a dividend strategy you might often do better by buying non-dividend payers with stronger growth which you can always then convert into income generating assets like dividend stocks or bonds, etc.

In all, these are additions to my already largest positions in my portfolio. Facebook in particular is a pickup of a name that I last bought when it dipped to $118. It’s always hard to buy near tops, however, but FB shares remain on the lower end of fair value range, in my view, and in the long term I have little concern for this debt free, high growth, free cash flow generating superpower.

For what it’s worth, each of these companies are likely to be one of the first trillion dollar market cap companies, with my vote going to Amazon – the most innovative company on the planet currently – to become the first to hit the iconic milestone. (although dividend lovely AAPL could also pull this off too).

Finally, these purchases left me with a little cash left over in the account, so I used the opportunity to pick up a fee-free ETFs, in particular:

– 12 shares of IJR (iShares small cap ETF) at $68.56 each, for a total price of $822.77

My idea here with this buy is that a) it’s fee free, b) it’s the lowest expense ratio small cap ETF available and c) diversification – most of my exposure is to large cap stocks so am getting some exposure to smaller caps. These stocks tend to be somewhat riskier; however, given the timeframe here, the potential reward makes this a decent bet as a diversification/ growth play.
So there you have it, lots happening. I always have this sneaking suspicion that especially with drums of war beating and other global uncertainty that disaster is just around the corner, but even if the worst happens and the market falls off the cliff tomorrow, barring an apocalyptic mad max beyond thunderdome society collapse, in the next 10-20 years, I have no doubt that I’ll be feeling good about these “cheap” buys.

That’s all for now. Thanks for stopping by!

2 Comments

  1. Jay

    Thanks for the update, and congratulations on your sale. That’s great! It’s awesome how quickly you were able to get that done, too.

    Glad to see I’m in good company with my recent AMZN purchase. Have a great week!
    Jay recently posted…Trend Following Trading Ideas for April 2017 (Part 2)My Profile

    • 10

      Great one Jay! Thanks for the kind words. Was glad to see it go through in just about a week. Take care!

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