Hi guys, another month has gone by and it is time for another portfolio review, now for the month of December 2019. Let’s get into it:
Apple (AAPL) – 10.87%
Cisco (CSCO) – 5.81%
Shell (RDS.B) – 5.67%
Abbvie (ABBV) – 5.20%
AT&T (T) – 4.91%
Unilever (UN) – 4.78%
Bank of America (BAC) – 4.76%
Vanguard Emerging Markets ETF (VFEM) – 4.40%
Caterpillar (CAT) – 4.31%
Pfizer (PFE) – 3.78%
Qualcomm (QCOM) – 3.78%
Vanguard Corporate Bond ETF (VUCP) – 3.28%
Activision Blizzard (ATVI) – 2.90%
Cash And Cash Equivalents – 35.54%
New Positions
Activision Blizzard (ATVI)
Pipeline
I bought this stock for a couple of reasons. First their push to mobile gaming is going to pay off in the long run, at least in my opinion. PC gamers might not be super excited about that, but mobile gaming is getting bigger and bigger.
Especially now tablets are getting extremely strong and can handle a lot more in terms of graphics than what is currently on the mobile market. They are already generating a lot of free cash flow from their subsidiary King Games with Candy Crush Saga. Now they released Call Of Duty Mobile and are soon going to laund Diablo Mobile.
Another reason is that they are getting back to their classic and are finally trying to stop the downward trajectory of Blizzard’s flagship game World of Warcraft. They released WoW Classic, which has been a big success for them. In my opinion the classic version of the game is going to bring a lot of people back not only playing Classic, but also installing the newer version of the game.
It might take some time for their efforts to pay off, but they are finally moving in the right direction after couple of years of stagnancy.
Numbers
Pipeline aside let’s take a look at the Metrics. At the moment I started my position their P/E ratio was around 20 – not great, but not terrible either. I consider 20 P/E to be on the fair side for companies with future growth potential.
I didn’t add to my position, because the stock has run up a bit after my initial purchase. As of now I am happy with my position and will probably leave it as it is, except if we don’t see a big downward movement.
Aside from that they have a great balance sheet with less than 3B. of total debt and a current ratio of 3.43. I consider their balance sheet to be very well-managed and that gives me a peace of mind for a downward protection.
As you can see the company makes less than 3% of my portfolio, and I am happy with such exposure for now. Gaming is a bit of a volatile industry and there are always risks there. That is why I prefer to keep my exposure to the low-side.
All in all this is a very long-term position for me and will probably just leave it as it is for now. If everything goes well in the future I expect to have a very decent dividend income from the company down the road.
Plans For The Month
We are the middle of December right now and holidays are right around the corner. This is the first time in four years that I can spend Christmas with my friends and family so I will use it to do so and will probably leave aside the stock market until the end of the month.
My mid-term exams are also coming next week so I will use my time to study and get ready for them. That’s why I will most probably leave my portfolio as it is and come back for it in 2020.
I will also use the end of the year to make a bit of a rundown of my portfolio, so stay tuned for a total breakdown of 2019 sometimes soon.
Conclusion
This will probably my last post for 2019, so I want to take my time and give a big thank you to everyone that has been following my journey. Hopefully you found some help in here to start your own one.
After all investing is not nearly as hard as financial institutions make it out to be and can unlock many doors for you in the future.
Thank you all for your time, wish you a Marry Christmas and a Happy New Year! Hope that 2019 has been a good one for you and that 2020 finds you in an even better place. Wish you all the best, be healthy, be loved and never stop improving!
Full Disclosure : I am/ we are long AAPL, UN, T, BAC, PFE, ABBV, CAT, RDS.B, VFEM, VUCP, CSCO, QCOM, ATVI
Additional Disclosure : This article is meant to identify an idea for further research and analysis and should not be taken as a recommendation to invest. It does not provide individualized advice or recommendations for any specific reader. Also note that I may not cover all relevant risks related to the ideas presented in the article.
Readers should conduct their own due dilligence and carefully consider their own invesing objectives, risk tolerance, time horizon, tax situation, liquidity needs and concentration levels. I am not a financial advisor and this article is for educational and personal accountability reasons only.