This is one of the craziest stories about the stock market ever!!! A big THANK YOU to WallStreetBets chat group on Reddit – this group has been buying a few stocks (most notably GameStop) to drive prices up and hurt the hedge funds who were betting against these stocks. FIZZ, (National Beverage, maker of La Croix) is one of the stocks being driven up. On January 4th, I bought shares of FIZZ for clients of the Pawleys Growth Fund at $84.50/share, and this morning sold half the position at $164.56 for a whopping +95% gain in three short weeks! I have done this a long time and rarely “trade” stocks, but this is amazing! WooHoo!!!
After a year that was difficult in so many ways, we are looking forward to a better 2021. How the markets acted last year provided yet another reminder that it is impossible to time the markets, and things turn very quickly in both directions. Last year our investment performance was solid. During the market dip in March we added to stocks for clients who had the risk tolerance and available cash, resulting in substantial gains. A defined process for selecting securities and constructing portfolios is critical for success, yet I believe limits are created by a lack of adaptation. Thus, we continue to test our processes to ensure we are creating portfolios that will perform well in a myriad of economic and market environments.
Please visit the “Market Updates” tab for a brief overview of 2021 and important portfolio actions to consider for this year!
Today the Dow Jones Industrial Average closed above 30,000, shattering record levels. 2020 has been riddled with so many challenges, but we have continued to work hard to protect and grow portfolios. Today further amalgamates the principle that successful investment results require both good planning and patience.
The Pawleys Dividend Fund is a core holding for many investors. We invest in stock of companies with little or no debt, good earnings growth, and rock solid cash-flow. At these all-time historical levels the Pawleys Dividend stocks are beating the market significantly – by over +9% this year! This means the fund generated an extra $54,000 for every $500,000 invested in these stocks compared to the performance of an index mutual fund.
We appreciate having the opportunity to help our clients, and are so grateful to have everyone’s trust and confidence during this unprecedented time. Warren Buffet has said never bet against America – corporate earnings continue to be solid, and the progress being made on the medical front to stop the pandemic is amazing. Thank you very much to all of our clients for allowing us to be of service. We hope you stay healthy and safe, and find peace and gratitude in your celebrations this week.