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I've being looking for new ideas to put some cash to work. I'm at my current max for BRK, at this reasonable valuation (when it gets cheap all bets are off with respect to its share of my portfolio).

What are people holding, or thinking about buying, besides BRK?

Here are a few of my best ideas -- and reasons to run from them

BUD- remaining domestic beer drinkers are snowflakes now, brand is trash, value trap
BN - you can't trust Bruce Flatt with an unattended sandwich
BNTX - Covid is over, do they do anything else?
DG - crankypants hates it because Jim can write, therefore value trap
DIS - scraping the bottom of the Marvel barrel
DFS - universal pessimism around consumer credit, probably justified
COF - see above
PYPL - sometimes I'm just too dumb to know better
LKQ - smart cars will stop crashing, electric cars won't need repairs
FCNCA - small regional bank, will probably implode
HIFS - see above
HHH - interest rate effects, we don't need office space any more, impending property apocalypse

DG gave me a good laugh

crankypants has bought RTX and LHX.

Also bought more NSC at about $197 or so. In 1976 my grandmother died (after both my parents) and I inherited 1/27th of her NSC stock that my grandfather had bought. It has been in the family now for 84 years - of course the name has evolved.

Again, I'm not a touch and go investor. I buy to hold. To me the RTX, LHX, and NSC versions of investing involve cycles and reasonable price/growth. No hero here, preservation and progress are the model.

Thanks deal- fyi, I initiated a position in some of our local rail, NSC @200- FPE 14.3, 2.72% yield, 33% off its 2 year high, 20% ROE, Rev. 12.7B, profit margin 20%, 5 year growth 13%, FCF-2.3B & as WEB & Gates say who can and will compete with the established rails? Risk/ reward seems appealing imo. My ATL neighbor & golfing buddy who works there shared his efficient & honest off the record opinion, 'Buy!!!'

I am definitely not a quant. I;,m more of a Peter Lynch type investor. I buy companies with strong financials and good prospects and hold them until something changes with the business model or I lose confidence in management - or they get ridiculously overpriced (rare.) I have accumulated about 40 companies in my portfolio over the years, most have done well and I am now approaching retirement and interest rates are up so so I am slowly trimming. Seems like a good time to decrease my risk and increase my cash. My priority at the point is to keep stress to minimum and avoid stupid mistakes.

The only thing I am buying right now is DIS - I will go up to 5% of my portfolio which is my limit for one security except for BRK and AAPL which I plan to accumulate forever and leave to my kids. Right now, I am holding AAPL, ACGL, BRK, COST, GHC, MSFT, PFE, STT, and SNOW among others. Recently sold ALC, FTV, MMM, MCK, and PARA because of the trim. Also holding CPRI which was just acquired at a nice premium. Note: For those who are shopping, I really like ACGL but it is expensive right now.

Thanks to all for the ideas! Feel free to push back on my choices! And feel free to join me on the DIS board.

abromber

Add AXP to my list. Added yesterday to decades long ownership.

Did y'all see that LKQ is at 52 week lows? Currently 43.62 with a 2.29% yield.

Did y'all see that LKQ is at 52 week lows? Currently 43.62 with a 2.29% yield.

Other than the usual squiggles, one could generalize that their valuation metrics have been gently falling for 15 years.
Presumably that trend will end somewhere.

I have long thought it was a fine company.
I mentioned them on the price dip in late December 2018 on the old Brk board. I had bought that November, and again that day.
Even with the recent 26% fall from the 52 week high, it has still returned 13.5%/year since the post. Better than a kick in the head.

Jim

Picked up some BFH today near the close.
They reported another earnings beat yesterday, $3.46 vs. expected $2.31
Just can't sort out the continued price deterioration.
I've read that there is concern regarding new limitations on late fees etc.
But do those fees really make up that great a percentage of their profits?

I've been looking at PayPal but think it's price is under pressure due Elon announcing a pay system through X. Solid fundamentals otherwise.

I owned WTM in the past thanks to Jim pointing it out. Two interesting events at WTM:

https://investor.whitemountains.com/news-releases/...

Bamboo was launched in 2018 by John Chu, a seasoned insurance executive. Bamboo provides homeowners' insurance for over 100,000 California policyholders, using its technology-enabled underwriting platform to select and manage risk. Bamboo has grown profitably and rapidly in the challenging California market and is now poised to expand into other states.

https://investor.whitemountains.com/news-releases/...

John J. Daly, a former founding member and principal of Alleghany Capital, has joined WM Partners as CEO and Managing Partner. The business will seek to establish majority positions in companies with $10 to $50 million of EBITDA and intends to deploy up to $500 million of equity capital over time.

And two companies that still have explosive sales growth that I'm looking at (via Barron's):

Citi analyst Andrew Baum wrote that Eli Lilly's diabetes drug Mounjaro, still awaiting approval for weight loss, could eventually reach peak sales of around $60 billion, with $37 billion in sales coming from weight loss treatment. Lilly's third-quarter sales are expected to rise 29%, according to FactSet.

Lilly's Mounjaro is competing with Novo Nordisk's weight-loss drug Wegovy and its diabetes treatment cousin Ozempic. Novo Nordisk has become the biggest European company by value since the Ozempic phenomenon. Third-quarter sales are expected to rise 34%, FactSet said.

Trying to hit near the bottom in beaten up stocks like INTC and DG can be profitable.

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