Tuesday, August 25, 2015

Recent Buy: ADM




My war on defensive stock continues. On Tuesday August 25, 2015, I bought 23 shares of ADM at $44.20 per share for a total of $1023.60. 

Fair Market Values
Simply Wall St: $46.3
S&P: $45.9
M*: $44.00

Yield: 2.5%
10 years growth: 12.1%
Payout: 35%

And ADM immediately dropped down to $43.00 at the end of the day. But at least I averaged down on my original purchase. I still have another $1000.00 but I am going to hold off on buying anything else for a while. The market is too uncertain at the moment so I'll take a breather unless we go on another 1000 point crash. 

Who knows, maybe we might have the 1986 crash and lose 25% of our portfolio in a day. I'm already down -$5000 mainly because of oil/commodities. Or if JNJ breaks $80 again I'm jumping in.

My dividends increased by $25.76. My 12 month forward is now $1,875.94 +FCISX payments 

What do you guys think about my buys?

BTW I'm not into politics at all (I don't even vote) but I would vote for Trump just for his hair alone. If he grew a mullet, I'm campaigning. 



8 comments:

  1. I've got to do some number crunching before I can commit more capital to investing but man is it nice to see better values in the markets. I just hope we still see at least the same if not better values by the time I can really get back to investing more heavily each month. ADM is a solid defensive company, we all like to eat right? Eventually I'd like to get this one back into my portfolio. I bought and then subsequently sold my shares a couple years back when my valuation process wasn't quite as refined as it is now. Big mistake but eventually I should get to remedy that.

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    1. Hi PiP,

      I see ADM as the ultimate defensive stock. It doesn't matter if K, HSY, GIS, KHC, UL, etc al fight each other or if a new company comes out and beat the old dogs. They can't operate without oils and flavors from ADM. Owning this stock is the ultimate middleman. thanks for visiting

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  2. Love your picture on Trump!
    Nice buy on ADM - on my watchlist, but not in my portfolio. Thanks for sharing!
    D4s

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    1. hi D4s, I know I should wait longer but I just couldn't. ADM is too attractive when $2 below my cost basis. I will continue buying until I get 100 shares. thanks for visiting

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  3. Great purchase, BDI. I own ADM as well and would love to add to my positions at this price. Its starting to get attractive again during this correction.

    Best
    R2R

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    1. his RM2R, I consider ADM a buy and forget stock forever stock. That's how much I trust this stock. Anytime it hits 2.5% is a buy for me. thanks for visiting

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  4. Love the ADM buy. It's a super small position in my portfolio but now is making my radar once again after this market swoon. I think we're going to start seeing some great consumer names being bought among the DGI bloggers if the market continues this slide. UL is also starting to look quite nice. Nice buy....

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    1. hi DH. 42% of my portfolio is in consumer defensive stocks. I am using this mini correction to get it to 60%+. ADM is a good start. thanks for visiting

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