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Monday, March 30, 2020

$100K STOCK PORTFOLIO - I Added A 3rd Dividend Stock! (Ep. 2) #Best Education Page #Online Earning

$100K STOCK PORTFOLIO - I Added A 3rd Dividend Stock! (Ep. 2)

- So here we are with another update video
for my $100,000 dividend stock portfolio that I am building.
If you guys are brand new to this series
we've done one episode so far but essentially what I'm doing
is documenting the process
of building up a $100,000 dividend stock portfolio
investing in a commission-free brokerage called M1 Finance.
Now the response from the first video guys was amazing
and I really thank you for that.
I had no idea this series was gonna be so popular
but I'm really excited about things now
and this week I made a brand new investment
that I'm looking forward to sharing with you guys
in this update
and we're also gonna talk about
the other stocks in this portfolio
and how they performed in the last month.
Now before we get into that guys
I do wanna go ahead and make a quick shoutout
to the YouTube channel known as Joseph Carlson.
I did mention it in the last video in the description
but a couple people said hey,
ya kinda copied your format from this guy and I'll be honest
I did get inspiration from that
creating a portfolio and documenting my own investments.
So if you guys are looking for another take on this
and also some videos that are similar
where someone is documenting their M1 Finance portfolio
make sure you check out his channel.
I will link to it down in the description below.
Now the other thing I wanna mention real quick as well
is that if you guys are interested in investing
with M1 Finance which is the exact brokerage
I'm using in this video
I have a free training linked up in the description below
that walks you through the entire process step by step
of getting started with this brokerage account
and it gives you a complete tutorial, step by step
on how to get started with this brokerage account.
That being said
I just wanna go ahead and make this disclaimer
that I am affiliated with M1 Finance.
So if you guys do use my link down below
I earn a small commission in the process
and the other thing I have to mention here
is that this is for entertainment purposes only
and of course
when you guys are doing your own investing of any kind
make sure you are doing your own due diligence.
But before we get into the portfolio update guys
let's talk about how much money I invested
in the month of January because this was a big month for me
and I invested almost $6,000.
So let's go ahead and break those numbers down right now.
All right guys so as you know from the first video
if you saw that,
I told you that I am automatically investing
$500 per week into my M1 Finance account
using that automated investing feature
and that means I'm following an investing strategy
known as dollar cost averaging
where regardless of the overall market conditions
I am investing every single week
which means that even if the market goes up or down
I am effectively paying the market average
for the price of my shares.
And since I'm doing a long-term dividend investing strategy
I'm not really concerned with the price
that I'm paying for these stocks
in terms of a plus or minus five or 10% range.
But this month I actually deployed a lot more than $2,000
into this portfolio
and that is because of what I call found money,
which is money you didn't expect to have in the first place
and so I said you know what why not,
I will invest this money instead of spending it
or doing something else with it.
So the first piece of found money in the month of January
was an overpayment refund from paying off my Nissan GTR.
I mentioned that in the last video.
That was one of the things I did in 2019
to set myself up for a good year of investing
and I somehow screwed up my payoff quote
and I sent them too much money.
So they ended up sending me a refund check of $1,056.64
and I did not expect to get that check.
So instead of spending that money
I threw it into my M1 finance portfolio.
Now in the month of January I also made a business decision
to open up my stock market investing course again
and this is a course that I put together back in 2017
and so since it is an older course
the material itself is still totally relevant and valuable,
it's over 10 hours of information in 17 different lectures
but because the information is a little bit dated
and the videos are about three years old
I heavily discounted that course down to $97.
Now I ran a launch promotion of $25 off
and I ended up doing about 35 sales of that course.
So after paying my credit card and related fees
and after having one refund on those 35 sales
I do offer a 30-day refund on this course.
I ended up with $2,434.86 in sales.
Now again, I considered this to be found money
because I didn't expect to earn this money in January
because I had no plans to open that course back up
until I thought about it
and realized it was a logical business decision.
Now that being said guys
if you wanna check out that course yourself
I'm gonna do a 48-hour discount with this code right here
which is FEB20 all caps or if you use the link
in the description below the $20 discount
is taken off automatically.
So if you wanna learn the basics of investing
feel free to check out that course yourself.
So that's my update there guys.
That is how I was able to invest almost $6,000
in the month of January in my M1 Finance portfolio.
Now let's jump into that portfolio
and look at the progress we have made.
All right guys
so here we are inside of M1 Finance portfolio once again.
As you can see here it has a current value of $6,484.16.
Now before we go any further
I do have to do a quick explanation here
about why some of these numbers may look a little bit wacky.
So for example here we see my portfolio has a value of,
as we said, about $6,400 and right now we are down $182.19.
However, it's showing that my return is a -35.89%.
Now at first when I saw this as well I was totally confused
and then also some of my returns down here
didn't quite make sense and that is when I looked into this
and realized that what we are seeing here
is something called a money-weighted return.
So I'm going to explain this very simply.
It is a kind of confusing topic but basically it's a return
that you may not be familiar with
because what most people are familiar with
is something called a time-weighted return.
And if we wanna see that number
all we do is jump over to the Holdings tab of this portfolio
and this number makes a lot more sense.
So overall based on holdings this portfolio is down 2.8%.
So no, I am not down 30%, 35% here
based on my initial investment.
It is based on the money-weighted return.
So with this return being shown right here on the homepage
each transaction within the portfolio is weighed
based on when it occurred in the account.
So most of us are familiar with the time-weighted return
which is the return on the initial balance of an investment.
And like I said, that is visible under the Holdings tab
and for the most part that is the return
we are going to be using
to reflect the performance of this portfolio.
So for example the time-weighted return
would be like investing $100 in the S&P 500 for one year
and seeing your return on investment.
So if you went from 100 to $120 that would be a 20% ROI.
And the common indexes out there
like the New York Stock Exchange, the NASDAQ, the S&P 500,
they all show the time-weighted returns
and so this is the return that most of us use,
most of us are familiar with
and we use it as the overall benchmark
to compare our performance to a market index
like the S&P 500.
Now this money-weighted return
which we're being shown right here
takes things a step further
and it's useful in dollar cost averaging
which is what we are doing here.
So in a nutshell when there is more money in the account
the performance is given more weight
and when there is less money in the account
the performance is given less weight.
So if we look at my funding history with this account
I essentially went from a $100 portfolio
and then I ramped it up outta nowhere up to $1,000
and then I ramped it up really heavily this month
by investing about $5,400.
So because I funneled money into this account
in such a short period of time that return in that period
carried more weight than the previous returns
which gives this a really scary number
but the reality of the situation is
that it is not nearly as bad as it looks here
when we consider the time-weighted return visible over here
which we'll go through these numbers in a second.
And guys as I dollar cost average more money
into this portfolio
and follow a more consistent monthly funding basis
these numbers right here will begin to be more accurate
and reflect a more useful number because as of right now
because of the rapid funding of this portfolio
this data is pretty skewed right now
and it's not very useful to us.
So that is my explanation there guys
and as far as my thumbnails go
I am still going to continue to use these figures
in those thumbnails and hopefully over time, like I said,
they will begin to make more sense
and be a more useful benchmark for this portfolio.
So that being said guys,
let's jump over to the portfolio activity.
We didn't earn any dividends in the month of January.
The last dividend we earned was back on December 27th.
But as you can see here in January
the first deposit here was $500.
The following week another deposit of 500,
then I had my additional deposit of 1,056.64,
then I had my third $500 deposit,
then I had my additional deposit of $2,434.86,
and my final $500 deposit for the month of January.
So a lot of money went into this account
in the month of January.
If we jump over to my Holdings tab
you can see that we do have a brand new stock
in this portfolio and that's going to be the primary focus
of this video
is why I've decided to add Walgreens Boot Alliance
to this portfolio.
And as we can see here looking at the returns,
we have a slight return here so far from IBM up 4.72%.
We are down about 4% in my new position here in Walgreens.
3M took a pretty nasty hit here on a bad earnings report,
which we'll discuss in a little bit
so they are currently down 10.82%.
We're up around 16% in Amazon, 13% in Microsoft,
15% in Apple, 17% in VOO,
and if you guys missed the first video
these are all just 1% allocations of this portfolio
because they were already in here
and I just didn't see any reason to sell them.
But if you guys disagree with me
and you'd rather see me sell them
because technically speaking Amazon does not pay a dividend
so they shouldn't be in this portfolio.
Well let me know what you guys think about that
down in the description below
and I'll read and respond to all those comments.
So that is how the portfolio has performed
and overall we're down 2.8%
which when you're investing in individual stocks
you have to be comfortable with these fluctuations
within your portfolio.
If you're not then investing in conservative index funds
because you won't see that type of fluctuation occurring
where you may see like I said here a 10% drop
in a stock I just started acquiring
because of the fact that they reported bad earnings
but we will talk about that in a minute.
All right, so let's start off
by talking about the newest addition to my portfolio
and that is a company called Walgreens Boots Alliance
and so this is a very logical pick in my opinion
for this portfolio based on the dividend yield
as well as some other fundamental indicators
like the price-to-earnings ratio.
So I wanted to put a healthcare stock in this portfolio
and I was debating
on whether or not I wanted to invest in CVS stock
or Walgreens Boots Alliance and real quick guys
I wanna do a shoutout here to ppcian.
He has a great YouTube channel
that is solely dedicated to his strategy
of dividend investing and he put together
a really helpful video analysis on Walgreens stock.
I'll put a card in the corner
and I'll link to it in the description below
and that video was really helpful for me making my decision
of whether or not I wanted to buy a Walgreens stock
or did I wanna buy CVS stock?
Now earlier in 2018 I believe it was
or it may have been 2019,
I can't remember exactly but General Electric
was booted from the Dow, which is the 30 ya know companies
that are seen as very reputable, reliable companies.
General Electric fell out of favor,
Walgreens Boots Alliance replaced them in the Dow
and it's funny because oftentimes
these new components of the Dow end up doing really poor
in the short term.
So if we look at the overall performance here
of Walgreens stock in,
I'm just gonna call it Walgreens from here on out,
we'll explain the Boots Alliance part in a minute.
You will begin to see
why I decided to begin investing in this stock.
So over the last six months it's actually gone up
and then it came back down here
but if we look at more of a longer term here
we can see the stock has been in a bit of an overall decline
over the last five years
which has given it a really strong dividend yield.
So as far back here
if we're looking at somewhere around July of 2015
this stock was around $95 per share
and now it is trading at $51 per share
so it's right near a five-year low
to be purchasing a dividend aristocrat.
And if you guys are not familiar with what that means,
that means this company has grown their dividend
every single year consecutively for more than 25 years
which is a really prestigious award for this company to have
and if you want that specific number,
well this company has been growing dividends
for 44 consecutive years.
So I'm very confident
in the dividend that they currently offer here,
which right now is a yield of 3.52% and in my opinion
based on the charting I'm not saying in the short term
this may go down five or 10%
but if we look at the next five years
of ownership of this stock I would expect this
to be a pretty decent entry point
to start dollar cost averaging into this healthcare giant.
So I just wanna read to you guys
the profile here of this company.
I'm not gonna read the whole thing
just to give you a general idea.
Walgreens Boots Alliance operates over 15,000 locations
in 50 states and 25 countries.
The core defensive positioning
is primarily around the pharmacies
that are placed in high traffic locations.
I'm sure we've all been to a Walgreens store
or we have been to a Boots store if you live over in the UK.
Currently the company has
the largest retail pharmacy market share
around 20% excluding mail,
which provides significant cost advantages and scale.
Annually the company generates over 140 billion in revenue
consisting of US retail pharmacy around 75%,
international pharmacy around 10%,
and pharmaceutical wholesale around 20%.
So in a nutshell through the three different entities
all under the one name here,
Walgreens Boots and Alliance Healthcare
are involved in the pharmaceutical retail space
as well as the general beauty retailer
through the Boots stores
and then through the Alliance Healthcare
it is in the field of healthcare supply.
Now overall one of the core reasons
why I chose Walgreens stock over CVS stock
solely looking at what this company's been doing
in the last couple of years,
I prefer Walgreens based on the fact
that CVS began following this strategy
of acquisitions through debt.
Now this was massive news last year in 2019
and that is when CVS purchased
a massive health insurance company called Aetna
for an astounding $69,000,000,000 in both cash and stock.
So for me personally
I didn't like this acquisition through debt
and diluting the outstanding shares for shareholders
so overall I just didn't like this strategy
and not to mention there were a few other reasons
why I made this decision.
So another one of the reasons here
is that Walgreens currently offers a dividend yield
of 3.52% at a price-to-earnings ratio of 12.8.
If you don't know what this is
we're doing to explain that in just a minute.
I wanna compare this to CVS
which currently offers a dividend yield of 2.95%
at a price-to-earnings ratio of 20.12.
So based on the earnings of these companies
we derived the price-to-earnings ratio
which shows you how expensive
or how cheap these shares are
based on the relative earnings of these companies.
And basically since Walgreens has a much lower PE ratio
than CVS they are significantly less expensive.
This company here is 20 times their earnings
in terms of the share price whereas Walgreens stock
is trading at just 12.8 times their earnings.
And so basically both of these stocks, in my opinion,
are what I would call cheap
based on that price-to-earnings ratio; however,
Walgreens is what I would call really cheap
trading at a 12.8 PE ratio.
For comparison's sake here,
if we look at the overall S&P 500
which is the 500 largest publicly traded companies
on the US Stock Exchanges, well the PE average is 24.38.
So Walgreens stock is give or take about 50% less expensive
based on their earnings than the average market right now
and even CVS is less expensive than the market average
and that PE ratio is one of these helpful indicators.
It's not the only one but it does give you an idea
of whether or not this company is expensive or cheap
based on other companies in that industry
or based on the overall market.
So based on that PE ratio,
I was comfortable diving into Walgreens stock.
So to circle back now I know we mentioned the fact
that this is called Walgreens Boots Alliance Inc.
and I wanna explain exactly why that is right now.
So basically a lot of people don't realize this
but through Walgreens stock
you also own a pharmacy/beauty retail chain
in the United Kingdom known as Boots,
hence the name Walgreens Boots Alliance,
there's where the first two parts come from.
However, there's also a third company in the mix here
which is Alliance Healthcare.
Now Alliance merged with Boots in 2006
to form a company known as Alliance Boots
then in late 2014 Walgreens purchased Alliance Boots.
So through this stock you get exposure
to both the US and UK retail stores/pharmacy chains
as well as a large medical supply company
called Alliance Healthcare giving you diversified exposure
to the healthcare space.
Now as I'm sure you guys can guess here,
one of the reasons why this stock has tumbled recently
is based on the good ole Amazon effect
and essentially that means a lot of these companies
operating these retail stores are worried about
what is going to happen with Amazon?
Now Amazon just recently launched this company
called PillPack by Amazon Pharmacy
which is essentially an automatic delivery service
for your prescriptions.
So obviously this is a massive threat to retail pharmacies
because if people are getting their medications
delivered to them in the mail
well then they're not going to these retail pharmacies
to purchase their drugs
and if they're not going to these stores
they're not walking through them
and making additional purchases in the impulse aisle
or realizing oh while I'm here
let me grab toilet paper and toothpaste
because they are ordering their prescriptions on Amazon
and not visiting an actual store.
Now long term do I see this as a threat to the pharmacies?
Absolutely, but in the short term
I would actually have to argue
that I don't think this is as big of a threat
as it seems right now
and I think right now based on the PE ratio
Walgreens is priced at a level
like they're literally going out of business.
And so my logic behind this
is that most people out there
who are taking prescription medication are older
and that is just a given fact.
As you get older you have more health issues
and you need more medication.
And the people who are using Amazon primarily
is the millennials and the younger generation.
So yes, 20 years from now, 15, 20 years
as this generation gets older
this is going to be a massive threat to these pharmacies
but I believe that the older generation
is still sticking to what works for them
which is going to the pharmacy,
picking up their medications in person,
asking questions if need be, and so I don't see this
as a massive threat in the short term
because it's older people
who tend to go to these pharmacy locations.
Let me know what you guys think about that.
Do you agree with me, do you disagree?
Drop me a comment down below.
Now the good news is that Walgreens and CVS
are not sitting there just willfully blind
to this Amazon effect because they are doing things
to try to combat this potential threat.
One of the biggest things they are doing
is offering in-store services
because that is something Amazon just cannot compete with
unless they're literally going to start mailing doctors
to people's houses.
So for example
Walgreens recently rolled out Jenny Craig
at Walgreens stores
where they will be offering meal planning
and other one-on-one consultations.
Similarly, CVS rolled out something called Minute Clinic
where they offer quick vaccinations, screenings,
and treatments right there in the store
and so by offering services instead of just the products
that gives them staying power in this market
where it's primarily shifting to online ordering.
Speaking of online ordering, we also know that Walgreens
is testing out drone delivery of medication,
partnering with a company called Wing Aviation
owned by Alphabet a.k.a. Google.
So they're not blind to the fact
that people are gonna be ordering prescriptions online
and they are investing in related technologies.
Now another key differentiator here
between Walgreens and CVS
is kind of a topic that is sensitive
but that is the topic of should these pharmacies
be selling tobacco products?
So years ago CVS came out and said
no we are done selling tobacco products
and Walgreens still does.
Now personally speaking I don't invest in these sin stocks.
You wouldn't see me out there buying a tobacco company
but I will be honest,
looking at this from a revenue standpoint
that is a big money maker for these stores
and so it's not my favorite reason for buying Walgreens
but it was one of the reasons why I chose Walgreens over CVS
because they still had the potential to make money
from those tobacco sales
which are ethically ya know somewhat irresponsible
to be selling tobacco
at a store designed with health in mind.
So I'm sure down the road long term
they will also ban these product sales eventually
but for the time being this is an advantage they have
over CVS in terms of revenue.
Now another important thing to mention here
when talking about Walgreens
is that they have also been purchasing Rite Aid stores
particularly in the northeast.
And I actually visited a former Rite Aid store myself
where I took my thumbnail photo
and that store had been transitioned
to a Walgreens location.
So in 2018 they purchased 1,932 Rite Aid stores
and three distribution centers
for a 4.4 billion dollar in cash deal.
Now back 2015
they tried to perform a 9.4 billion dollar merger
of Rite Aid and Walgreens; however, that was blocked
by the FTC based on antitrust regulations,
a.k.a. if Walgreens owned all of the Rite Aid stores
they would have a monopoly on the pharmacy space.
So instead they purchased roughly half of the stores
and the other half were sold to the grocery giant
known as Albertson's.
So in a nutshell what I personally see here with Walgreens
is a dividend aristocrat
with a 40+ year dividend growth streak
at going out of business prices
when that is just not the case, based on what I'm seeing.
Now in the long term yes Amazon is a threat
but I think right now
people have just been scared out of this investment
and I don't think it's really as murky
as they think in the short term.
That being said, there is a major con here with Walgreens
and I'm gonna credit, again ppcian for pointing this out
and that is what exactly is the mote here for Walgreens
in the Boots store here?
Because looking at my other investments here,
looking at IBM and 3M one of the major assets that they have
is their intellectual property
and I like the way Ian put it in his video.
He said what exactly is the secret sauce here
that Walgreens offers?
What would stop Amazon
from opening physical pharmaceutical stores?
I'm not sure if they would
but what stops them from doing that
and what isolates Walgreens from their competition?
There's just not really a clear answer on that
whereas companies like IBM and 3M
have all of these patents and technology and systems
that another competitor just could not replicate
and this protects them from their competition.
But all of that being said guys,
I am comfortable with Walgreens,
I'm excited to be investing in this company,
and I'm looking forward to seeing where this goes long term.
So right now my portfolio mix is 32% 3M,
32% Walgreens Boots Alliance, 32% IBM,
and then 1% in these smaller pieces of my pie
and I'm not gonna sit here and say
that I'm not gonna buy another stock for a while
because if I do see a good sale taking place I will
but I would say
based on where I'm at right now it's unlikely.
I may just stick with these three stocks for now
before I find another company in a different industry
that I want to diversify into.
So moving on now let's cover an update here on IBM stock.
If we jump over to the Holdings tab
my current return on investment
in a very short period of time is 4.72%.
So overall I'm very excited about my IBM investment.
So in the month of January
we found out that IBM
is working with a fintech company called Broadridge
to offer cloud-based services to their clients
through private cloud offered by IBM.
A lot of people may be familiar with this company
and not even realize it.
This is one of the companies that's responsible
for mailing out those voting proxies
when you are an owner of a publicly traded company
with voting rights.
So if you've ever received a voting proxy in the mail
there is a good chance
that it actually came from Broadridge.
Another big piece of news under IBM,
under the block chain arm is they secured a patent
for a self-aware token designed to record events
of offline transactions.
We also saw IBM's artificial intelligence technology
on display at the 62nd Annual Grammys.
According to Tech Republic the team at IBM
took over 18 million documents and data sources
on this year's Grammy nominees
and distilled them down to the most interesting nuggets
about each of the artists to create a modern day version
of the 90's Pop-Up Video.
So kind of an interesting use of their technology
and getting back into the public eye
and essentially reminding people
hey this company still exists.
And then finally the piece of news I'm really excited about
their quarterly earnings report was really good.
After five straight quarters of decline
IBM showed some revenue growth
for their earnings report this month.
They ended up with a top line and bottom line beat
which means the earnings and revenue
beat what Wall Street analysts were expecting.
And essentially what they said here
is that the Red Hat merger is paying off
and the cloud business is growing
and Red Hat hit $1,000,000,000 in revenue
for the first time ever and honestly guys
I love that Red Hat company.
It's kind of a thorn in my side
because a couple of years ago
somebody recommended that I invest in it
and I don't personally take stock tips
because they're a dime a dozen out there
but Red Hat was one that really did pay off
but I'm glad that IBM owns it
and I'm glad I have a piece of that company
and the cloud business is still growing rapidly as well.
They saw 20% plus growth in both cloud
and Red Hat in this quarter
and they're also largely focused on paying down debt
at this time.
So overall this was a great quarter for IBM.
It may be a sign of things to come
after a long period of decline
and this may get new investors excited
about getting into IBM so we may see a bit of a rally here
in the short term with this stock.
So finally we saved the worst for last in this case here,
or the best depending on how you look at it and this is 3M.
I'm down just about 11% in this stock
and they ended up having a really bad earnings report
very recently here which dropped the stock
and so that is why in the short term I am down on 3M.
So here's what we found out.
Last week on Tuesday 3M reported earnings
that were not so great and the stock dropped 5.72%
and here's the thing guys.
Like I said, as an individual stock investor
you need to be comfortable stomaching these highs
and the lows.
If you're not comfortable with that,
that is why they have index funds
and other types of diversified products
that you can invest in.
So essentially here's what came out in the earnings report.
They reported earnings of 215 a share versus 210 expected
but there were a number of charges
related to restructuring and litigation
giving them adjusted earnings of $1.66.
Essentially, these figures were not accounted for
or planned for.
They also lowered their forward-looking guidance for 2020
which is something that analysts just don't like to see.
They announced they expect to earn 9.52 a share in 2020
versus Wall Street expectations of 9.59 per share.
Now this isn't a huge deal.
We're talking $.07
but this is something we have to consider here,
that 3M has not been doing very well over the last year.
I mean if we look at the last year for this stock
they went from 220 a share down to like 150
during a time when the market is just roaring ahead.
So a lot of investors may be frustrated here
and some people may have just been ready to jump ship.
Then we had a bit of a phantom rally here
and then we came back down to Earth.
Now we're trading around, like I said here, 160 per share.
Earnings guidance was cut multiple times in 2019
which essentially means
the amount of money this company expected to earn
in the future they offer figures on this
and then they change their mind and lower that figure,
it's just something
that investors and analysts do not like to see.
Overall the segments that were hurting right now
are the safety and industrial division
as well as the transportation and electronics division.
They were also involved in more litigation
over PFAs which are a harmful substance
that they were producing
and it's been found to be harmful to the public health.
This is a type of chemical
that was manufactured from the 1940s to the early 2000s.
Here's what the CEO had to say on the matter.
He said 3M discovered and voluntarily informed the EPA
and appropriate state authorities
that discharges from our Decatur, Alabama facility
may not have complied with permit requirements.
We immediately idled the relevant processes
and took steps to address these issues.
And also we have seen that industrial activity
has tapered off in the US and China.
As we mentioned in the first video
3M operates in many of these cyclical industries
so when you see a slump in manufacturing over in China
and in the US and on the industrial side
well that is going to hurt 3M
as they are a key supplier of products and components
for this manufacturing.
We also saw auto sales fell 8% in China in 2019
which led to retraction in the transportation
and electronics division
and also Boeing halted the production of the 737 MAX in 2019
and since 3M supplies aerospace products,
this has hurt them as well.
They also announced they would be cutting 1,500 jobs
in an effort to save as much as $120,000,000.
So we got a plethora of bad news here.
Additional litigation, lowering forward looking guidance,
and we also found out
that they were laying off a number of their employees
but the important thing to realize here
is this is all short term,
nothing to do with the long-term outlook or trajectory
of this company in my opinion.
Look at it right here guys.
1902, that's how long this company's been around.
They're gonna be around for a lot longer,
nothin' is happening in the long term here
that is going to threaten 3M.
And then we have one final wildcard in the mix here for 3M
and that is coronavirus.
So one side of this argument
is that this is going to hurt China
and hurt sales over there
in terms of manufacturing and related industries.
On the other side of the token who makes all of the masks?
3M is a huge producer of medical masks, respirators
and they are massively ramping up production
to meet demand based on the coronavirus.
So it could help them or it could hurt them
based on those two scenarios so it is a total wildcard.
So anyways guys, that is gonna wrap up this month's update.
I was actually kind of happy
to see a bit of a retraction here
and I'm not just saying that.
I think it makes it more entertaining
and more valuable for you guys
and it gives you a more realistic idea
of what starting positions look like in the stock market.
So it's been a really interesting month.
At one point I was up like 10 or 11% in IBM
but we've seen some market pullback
related to concerns over this coronavirus
and some other factors in general but I'm excited
to dollar cost average more money into this portfolio
and update you next month.
If you wanna see all of these updates
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if you want a step-by-step training
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with the discount code FEB20.
With the discount that's literally gonna cost you $77
for a 10+ hour course on investing in the stock market
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If you buy the course and you don't find it's helpful to you
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So all the links are down below guys.
Thanks so much for watching
and I will see you in the next video.

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