Today, typical of my nature, I took a contrarian route and put some money to work. While most investors are sitting on their hands right now, I’m taking advantage of long-term value in a group of solid, well-run businesses.
New positions:
Canadian Pacific Kansas City (CP), Intuitive Surgical (ISRG), JPMorgan (JPM), Nucor (NUE) & Texas Instruments (TXN)
Added to existing positions:
Amazon (AMZN), Cisco (CSCO), Eli Lilly (LLY) & Netflix (NFLX)
My rationale isn’t just about chasing discounts. Fears about higher interest rates and fuel costs sinking the economy are misplaced. Counterintuitively, these conditions are evidence that the underlying economy is resilient.
More importantly, tough times act like a filter. High rates and pricey fuel hurt struggling businesses. But strong companies with healthy balance sheets turn these conditions to their advantage. They can afford to keep building, upgrading, and growing while weaker competitors pull back. In short, the strong get stronger, and that’s where I want my money invested.
Podcast Update:
You might have noticed a lull in podcast episodes lately. Bottom line- I’m bored. Almost every question I’m receiving is about the upcoming midterms. I can’t think of a less relevant wealth building topic. So, if you’d like a new episode released before November, email with a topic that doesn’t bore me to tears.