Time to Go Christmas Shopping

For stocks that is!  🙂

I recently came upon some new capital to be added to my portfolio via the sale of an old mutual fund account that I plan on putting to work in DGI stocks soon. First, some back story.

While I didn’t get into individual stock investing until last year, I actually started out investing in mutual funds back when I was around 14 years old, kind of by accident. Growing up I always worked during my summer vacations from school and by this point had amassed a nice little amount of cash in my savings account (I think around $4K) from a lot of lawn mowing and odd jobs over a couple year timeframe. Knowing that I didn’t know what to do with it, besides put most in the bank and spend the rest on pizza and soda at the variety store after school, my Dad forced strongly encouraged me to invest it in a mutual fund through our family’s financial advisor/insurance salesman. I ended up putting all of my hard earned cash into a utility sector stock mutual fund that I remember promptly dropping in price shortly thereafter. Between “losing” a lot of money right off the bat and then getting interested in a whole host of other things as a teenager  😉 , I pretty much forgot about the account, just letting capital gains and dividends reinvest since then. Plus since 14 year olds can’t legally have these types of accounts on their own, it was set up as a joint account with my Dad who has paid the taxes on it in the meantime. Thanks Pops!

During my recent vacation home, my father had the account transferred over to my name. The account transfer was completed a couple days ago. After taking a look at the fund’s low yield and lack of consistent dividend growth, I decided to sell all the shares. While I’ll end up possibly having to pay capital gains taxes on it, I plan on reinvesting the cash received into dividend growth stocks which is my preferred method of investing, allowing me to get that much closer to financial independence.

So what to buy?

With the price of oil dropping lately, and sending all the major oil stocks down with it (anyone else see the crazy swings on oil stock prices on Black Friday?), I’ll be turning my attention to that sector first to add to my stake in BP, Chevron, and initiate one in Exxon Mobil. Even though this will put my portfolio very overweight in the energy sector, I’m comfortable not being too diversified right now in the very early years of the accumulation phase of investing. Over time, things will start to balance out. Until then, it makes sense to just buy whatever presents good value.

Looking at the rest of my portfolio, IBM has pulled back quite a bit since the last time I purchased shares back in 2013 so it makes sense to average down on that position which quite a few other DGI bloggers have also been doing lately. While the company is currently struggling with revenue growth, I like the long-term prospects and the company’s commitment toward transitioning for the future into cloud and big data.

With whatever cash is left over, I’ll put into Loyal3 and continue dollar cost averaging into Disney, Unilever, etc. Speaking of Disney, has everyyone else seen the new Star Wars movie trailer yet? Check it out below. Can’t wait until December!

Hope everyone had a great Thanksgiving!


Disclosure:  Long BP, CVX, IBM, DIS, UL, and have a current buy order placed for XOM.

What do you think of investing in the oil sector today? Any other stocks on your watchlist?


  1. Hi SFZ,

    First of all, I have to tip my cap to you for investing in mutual funds at 14 years old. You could have spent that money like most teenagers (myself included). I wish my dad guided me in the same way, but my dad was and still is a big spender.

    I recently sold some old Tracker funds, and bought some companies in October with them. It was quite exciting having a lump sum like that and going shopping with it. The good news for me is that I’m still relatively new to this so I had a lot of companies on my ‘Buy List’. Enjoy it!

    It looks like you have a really sensible approach to how you plan on spending that money. The oil and commodity sectors has been through a rough patch recently, and there are some great companies on offer at excellent value. Why not capitalise on that?!

    Good luck with your purchases.

    1. Hey Huw! Thanks for stopping by. I definitely lucked out having parents that strongly encouraged me to be frugal and responsible with my money. It’s great to be able to make several purchases all at once and really take advantage of this pullback in the oil sector as well as IBM, especially since it normally takes a month or two to save up for just one buy.

      Best wishes,

  2. Awesome that will have some money to put into some oil stocks with them taking such a hit, which, in my opinion, offers some excellent opportunities. I’m looking to add to mine as well, as I hold COP, BP and XOM in small amounts. I’m leaning towards BP, but I’ll have to see which way the market takes us next week.

    I’ve been buying DIS as well. I think it will continue going up past the 100 mark soon with all the movies planned and the success of the marvel franchise.

    Oh yea, watched the trailer and cannot wait!! It gave me the chills seeing the Falcon.. such a nerd I know! Ha

    1. I think seeing the Falcon was the best part! Really looking forward to the movie next year. I was thinking of holding some cash for a while after selling the mutual funds to wait for some other stocks on my watchlist to come down, but after seeing Friday’s market session I figured I might as well take advantage of it and load up on the oil stocks now.

      Thanks for commenting SA Dividend.

      Best regards,

  3. Yeah I saw the sell off in oil on Friday SFZ. I hope it continues to tear through the industry, to the supermajors. I’ve been hoping to add to CVX very soon. I loaded up on COP several years ago, and it is a very large percentage of my portfolio. So that one will need to fall substantially before I add. Have you taken a look at BBL. You may find it appealing.

    Have a great week

    1. I’ll have to take a look at BBL and do some research on it. I know quite a few bloggers recently have been buying shares, just need to do my due diligence first.

      Thanks for suggestion, have a great week as well!

  4. I like the idea of averaging down on IBM but Im waiting for it to get a bit cheaper. Will be interesting to see the star wars reboot, I didnt like the last 3 and hopefully the new direction will get back on track with such an epic franchise.

  5. If you like that Star Wars trailer, you might want to take a look at Hasbro as they have the license for the toys. They also have Marvel comics and D&D in their portfolio. The stock dividend is 2.9% and the p/e is a little high around 20, but doable. (I am long in HAS).

    1. Highlandfool,

      I’ve looked at Hasbro before since it’s available via Loyal3 and have it on my watchlist. Would just prefer to get it at lower P/E.

      Thanks for stopping by and commenting.

  6. These are very similar to the buys I plan to do in the next week. CVX, XOM, and BP are all on my meter and I am unfortunately going to overweight on oil momentarily. One can include COP as well. I feel that BP and CVX are the cheapest at the moment. BBL is also cheap but I’m not a favorite of the materials sector.

  7. SFZ,

    Glad to hear you’ll have some extra funds to convert to DGI, what a fun reward for the work you and your Pa did so many years ago. I also like your picks for the coming investments, I’m considering all the same names and even have some reits and Canadian banks in mind to finish off my 2014 IRA contributions. Too many possibilities with too little capital. How cool is JJ Abrams for directing the reboots of both Star Trek and Star Wars??? Can’t wait to see it, and I would kill to help edit any of his films.

    Take it easy!

  8. SFZ,

    Read you posts from the beginning of starting the blog up until now. It’s nice to see someone starting from the beginning and able to watch the progress along the way.

    Wish you the best of luck and have fun Christmas shopping for stocks!

  9. Hi SFZ,

    Nice to hear you have some extra funds to invest. I’m looking at some of the energy stocks as well. I’m leaning towards RDS.B and possibly more CVX but we’ll see. Good luck in 2015!


  10. Great post and interesting story!

    It’s a good time to have some spare cash as there are some bargains. I’m looking at Disney and British Land currently.

    All the best!

Leave a Reply