Top Fifteen Listed/Tradeable Holdings as of November 2007 month end. Prices as of December 5, 2007.
I've done a lot of trading this November. I haven't been disclosing all of my trades but hopefully some of the changes in my top holdings will give you an idea.
1. Berkshire Hathaway (BRK/A – $147,500) (up from #3) – Wish I owned more. This just keeps going up huge. The stock is benefiting from the earnings momentum in Property and Casualty insurance plus it's considered a safe place to hide given Warren Buffett's disklike of complex derivatives.
2. Chevron Corp (CVX – $89.04) (same at #2). Even with oil down the stock is still cheap. And since I don't like Exxon (XOM) for many reasons, Chevron and Conoco (COP) make up my oil exposure.
3. Ishares Inflation Protected Treasuries ETF (TIP – $105.35) (down from #1) – I've sold some TIP at 106.75. Plus some of the calls I wrote against the position have been excercised against me. While I still think TIPS should make up an important part of any portoflio right now, I'm waiting for a pullback after my sales to pick up some more.
4. Conoco Philips (COP – $81.36 ) (same at #4) See my comments on CVX. They have been getting some positive press because of their refineries that are projected to have better margins with oil prices falling in the last month.
5. B P Prudhoe Bay Oil RoyaltyTrust (BPT – $74.03) (same at #5) This is an embarrassment of riches. I wouldn't buy this now but I have so much in capital gains this year that I can't sell till 2008. As the royalty owner of the oil under the ground in Alaska, BPT is my least socially conscious investment.
6. Citigroup (C- $33.69) (up from #7): The stock falls, I buy more. Abu Dabi buys more. People who average down are buying more. I've had my fill. Stock will rally on a CEO being chosen. My favorite choice for CEO is my old boss at Morgan Stanley (MS), Vikram Pandit.
7. Usiminas S.A. Brazil ADR (USNZY – $48.34) (down from #6) A share split and an emerging markets rally. Since my cost basis is around $1.50 from the last decade I don't think I'll ever be able to sell this stock and pay the capital gains taxes (around 26% all in for New York State) unless I see the company falling more than 25%.
8. Vanguard Pacific ETF (VPL – $73.68) (up from #9) Asian exposure.
9. Freeport McMoran Copper & Gold (FCX – $101.60) (down from #8) Gold is down from its highs. This stock is both an emerging market play (Indonesia) and a gold play. Everything seems to be going in FCX's favor right now. Beware a correction in emerging markets or gold. I'm holding for now.
10. Chubb Corp (CB – $53.90) (up from #11) Stock continues to inch up. I still haven't had enough of a pullback to buy more since September.
11. Anglo American PLC UK ADR (AAUK – $32.91) (down from #10) Cheapest major global mining company. Stock up only slightly during the month. Anglo American owns Debeers Diamonds which has much to gain from petro dollars buying diamonds. I'll never cease to be impressed by how Debeers convinced the world that the diamond was a symbol of love about a hundred years ago. Now they have the world convinced how much a man must spend on that symbol.
12. General Electric (GE – $36.71) (up from #14) – Multinational benefits from falling dollar. They are trying (but not yet there) to remake themselves into an eco-friendly company of the future. Last month with GE at over $40 I said I wouldn't buy it above $37, so I picked up a little below $37 during the end of month selloff. I am also short some Jan $37.50 strike puts.
13. Anadarko Petroleum (APC – $59.58) (down from #12) – Stock is up but its position fell. This Texas-based oil exploration company just keeps rising. They are so cheap. I should sell BPT and buy more APC. Morally, I don't feel great about this exploration and development company – management is difficult to influence. You can read about Anadarko's carbon sequestration program in Wyoming if you want to feel a little better.
14. Kraft Foods Inc (KFT – 34.59) (not on list)- share price increase put it back on the list.
15. 3M (MMM – $83.90) (was #13) Solid and creative company. I'm sticking with 3M. Makes a good base of any portfolio.
Off List From October
Microsoft (MSFT – $33.96) (was #15) Huge run-up in October put it on the list-stock price is over 10% off its highs. I'm holding this multinational that is getting recognition for its global exposure (falling dollar helps) and increasing revenues from tech spending. Also, if Democrats win in 2008 they usually care more about international patent/piracy than Republicans. Could be good for Microsoft.
See May 2007 List.
See June 2007 List.
See July 2007 List.
You Can't see the August List because I was too busy to make one.
See September 2007 List.
Disclosure: I do not disclose positions in previous employers, very small market capitization companies (under $200 Million USD) or securities that do not trade on a listed exchange in my top holdings.