Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Completing Buys for Portfolio - IBM, PBR, COST

Posted on | September 30, 2008 Time: 2:56 pm |

The Secular Trends Portfolio is now up to 17 positions, right in the range that I would like to have as my mean. I averaged in to Costco (COST), IBM, and Petrobras (PBR) as I waited out the flailings of the market. I’m still utterly displeased with everything that happened yesterday, but the government has really put up a “unified tease” this morning.

A deal on Thursday or Friday seems eminent, although I did say the same thing on a Saturday post so let’s just say “fairly certain”. The market is really putting a full hedge on that result, and despite my underlying fears I want to have enough equity allocation (60-70%) to allow for ready comparisons.

I was strongly considering adding a second oil producer instead of taking Petrobras to 4%, but at the end of the day my secular thesis is driven by oil supply, and oil prices based on supply. PBR is THE story when it comes to supply, and the Brazilian market has cratered. In the grand scheme investors couldn’t ask for a much better entry point.

IBM meanwhile, performed brilliantly in the tech-led recession of 2001-2002. I expect it to hold up well this time around too, mainly because of fantastic global footprint.

Costco is probably my favorite name in the consumer space. Stand-up management, envious cash flows, and a business model that makes both poor people and rich people come to adore it.

Adding 170 shares IBM at $112.78, 400 shares COST at $63.73, and 500 shares PBR at $41.98

Ryan Barnes

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Category: Broad Markets, Investing Philosophy, Secular Trends Portfolio
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