For the longest time I have been investing in businesses and other long term assets. I now have 3 solid businesses and I am happy with the profitability and growth in all of them. Over the last few years I kept putting most of the profits from my businesses back into the businesses.
I have finally reached a stage where there is nothing else I can really invest in as far as my current businesses and I will have to finally start taking profits out of the businesses.
I want to accumulate liquid assets and I want to have $1,000,000 within 2 years, I am going to buy $50,000 a month of stock for the next 12 months
and I want to only buy 1 stock a month. I thought long and hard about
what I want to buy and here is the list in order that I will be buying going
forward.
I actually have given hundreds of thousands of cash in loans to my friends, but anytime I have needed it and wanted it back, every single person has been unable to give it back to me, so I will not be lending out cash anymore to anyone until I have $1,000,000 in liquid assets saved up.
I
think I have reached a stage where all I need to do is to protect the
money I have and not really take any big risks to make money.
Every company on my list is a company that I admire. I would have put JPM on this list but after the recent blowup in London, there is no way to trust JPM anymore, so they are off my list. There were a lot of companies that I really want to add to this list, but for now this is the list.
I have done lots of research and I got this list based on me never having to worry about a stock I buy. My thought process is that I can buy these companies and not have to worry over the next 10-20 years. I know the old buy and hold strategy is dead, but that is my plan. I am going to buy these companies and hold them over the next 10-20 years. I want to be able to live on dividend income after a few years and I figure this will a step in that direction.
I will be buying over the next 12 months:
BRK-B - Berkshire
DIS - Disney
MMM - 3M
GE - GE
MSFT - Microsoft
F - Ford
INFY - Infosys
AXP - American Express
CAT - Caterpillar
GOOG - Google
JNJ - Johnson and Johnson
DOW - Dow Chemical
Month 13-24 stock buys is:
SAP - SAP
LNKD - LinkedIn
EMC - EMC
ADBE - Adobe
XOM - Exxon
AA - Alcoa
NUAN - Nuance
AH - Accretive Health
COST - Costco
KO - Coke
MCD - McDonalds
PG - Procter & Gamble
A few comments have already come about my list and why I have a company like Accretive Health on my list, since it does not fit my model of buying and not worrying about it. Accretive Health has major allegations of fraud by a few states. I know all this, but I was sitting on a flight next to an Accretive Health employee and she was so passionate about the company and what they do and was defending the CEO, Mary Tolan with such vigor, that I got interested in this company and even though it does not fit my mantra of stocks that I should own, I am going to buy them also.
I have also had a lot of advice about Dollar cost averaging, and buying all 24 stocks every month for $2000 each so that I do not get hurt in case the market moves one way or the other on a few stocks.
I understand about dollar cost averaging and I will think about it, it is a good idea. It is amazing that I have so much input on the blog entry after just 1 day and very little input on all the other entries.
