My journey of becoming financial independence by 35 years old
Last year, I bought BABA as I believe the giant internet companies is only in its early stage of growing. The price increase from $90 to $120, then back to $80, and now settle around $82-$86. It will take awhile longer for baba business to profit. Keep in mind that the company is actually making a profit each quarter, compare to Amazon, whose is bleeding money each month and the price of Amazon is $3xx.xx. Baba is not paying a dividend, I want to have about 10-15% of my portfolio to have some growth stock.
Today while the market was falling 0.4%, lumber liquidator fell 20%. Down from Its year to date and all time high -50% and -75% respectively.
1. The news LL was selling toxic chinese laminated products was causing the initial sell off in March. Since then, the company has stopped buying from Chinese suppliers, and using Europe and North America supplier.
2. LL said it is facing $10m lawsuit and the surprise quarterly loss was shocking the traders.
3. It would probably get worse for LL before I’d get better, but I don’t mind coming in at 75% down from it’s all time high while the company is fixing the issues. I might average down of the stock falls below $15, otherwise I’ll ride this out. As the housing market heat up, construction suppliers like LL will benefit from the boom. It will take a few years for LL to get its reputation back, but lowes or homedepot or other people off craigslist or small suppliers might have done the same thing as LL.
With the that said, I also made a three other purchases:
I purchased 44 shares of LL at $26.9x
I also bought 10 shares of JPM at $62.xx , it will add $17.5 per year in dividend
10 shares of PFG at $52, it will add $14.4 yearly dividend
10 shares of COF at $81.05, it will add $12 to my yearly dividend income
3 shares of F, it will add $1.2 to my yearly dividend income
Ford was down due to the recalls, I’m looking to continue to average down. I love American companies. The Ford trucks are durable, and they are symbol for powerful working trucks. They have gas saving cars to diversity their products line. So why not?
This will add $64.1 to my yearly dividend
While $46.1 is not a lot. 10 shares of each company seem to be small, but I don’t have to put any effort to earn the money. This is totally unearned income, that I’d get taxed very little 0-15%. Let’s face it, America’s taxes system favors business owners/stock shareholders over workers. This is why passive income is so important and so good.
This is the very reason to build a mini finance ETF, I am long financial companies. It also extra nice when I don’t have to pay commissions for any of the purchase up to 100 trades/year. Since mine is resetting in May, I’d like to take advantage of the free trade allotment. I only traded 51 of 100 trades this past year.
This weekend will be very busy for me, I’ll be coaching a soccer game on Saturday. Sunday, I’ll work for my co-worker. I’ll have the Monday off to play the Annual Classic Golf Benefit event. We got -8 last year as a team. We got beaten by a team of old men, they are rich, so they bought a lot of mulligans. Ha! That was the whole point of the tournaments, the more mulligans you buy, could lead to better shot, and increased the charity donation. It was a win-win situation.
There are a couple of badminton tourneys, but I don’t think I’ll have time for more activities as my schedule is packed. I’ll take time to plan our road trip this summer with my sister’s family. I also need sometime with Mr. to make some changes after I’m done with soccer in June.
What’s about you? What trading service do you use? How much commission per trade do you have to pay?