As I promised earlier, here is an update of my investments and profits. I am so excited to announce that earlier this week, I exited 3 of my positions within my portfolio with a total profit of $73,000.
Today we’re going to dive deep into what kind of trades I made, which stock I invested in, how I made $73,000, and what that means in terms of return.
I will walk you through every step so you have a good understanding on how to do it, and I will also include 3 tips for investing into the stock market. Let’s get started.
The first stock I got is CAE, a Canadian company purchasable both in the US and Canada. I purchased it after the coronavirus market crash during a period where airlines were not very popular and a lot of people didn’t believe that airlines could recover.
What actually happened was that the market eventually formed a bottom, even though it took a while. The significance of this investment is that I chose to Invest when it is not popular
(TIP #1). I focus on unpopular stocks that are not momentum-driven, the ones that are on a deep discount. Here is the calculation I got for CAE. My entry price is $14.92.
This is the US version of the stock, therefore the currency is in USD. Below is a chart depicting my investment and its growth.
I started in around May 2020 when the price was low. For capital I input $45,522 for approximately 2,800 shares, then held onto it because I understood the business model of CAE (It is a subscription-based training software for pilots in the airline field), as well as its contracts and other details.
Having an in-depth understanding of the stock will give you a competitive advantage as you can see in this case. I held on to CAE for approximately 6 months with a 44% increase in profits in the graph below.
Earlier this week I took profits when the price was $21.50 and the market value was $61,000, with a gain of $18,753. This is not bad at all for waiting 6 months.
Note how I didn’t say “6 months of work”, because I actually didn’t do anything. I simply invested in companies that are at a great discount with proper research, and held onto their stocks for 6 months. Essentially, this is what passive investing or semi-passive investing is all about.
If you are looking to invest in discount stocks, then Tip #1 is to invest in companies that are not popular at the moment, and when you are investing properly you are looking for a discount.
If everyone is looking in the same area, you will not find discounts. It is better to wander off to where people are not looking to find discounted opportunities, then you may be familiar with the indicators I’m using.
Near the bottom of the chart, I have a couple of green lines signifying the price at which I entered at, and you can see that the most recent price at which I exited is approximately $28 which is not bad.
I still have some position for CAE, so this is not yet considered a full exit. Now the question is, will CAE continue to go up? Am I happy with the return?
My answer is well, probably - it is a great company, and yeah, totally. I’m happy with the return and now I’m sitting in cash waiting for the next opportunity. Now let’s move on to the next stock.
The next stock is Chef Warehouse, which I entered around May as well during the coronavirus crash. Chef Warehouse is a delivery network for restaurants in the US. Amazingly enough, this is actually a stock pick from Investing Accelerator.
When I was investing in this stock, I actually wasn’t familiar with this company initially until I started doing the research for it to understand the business model, what everyone’s roles are, how the market views this stock, and how it is being impacted by the market.
After a careful assessment, I determined that all in all it was a good buy. I entered at approximately $12 at that time and I put in around $54,000 into the stock, which is 4,500 shares.
This is quite a sizeable amount, and I held it for approximately 6 months as well. For this stock in particular, the recovery was actually much faster than I anticipated.
It jumped up shortly after the election was over and my gain (as of last week) was around 71-75%, depending on which transaction you’re looking at.
Therefore, the net return on Chef Warehouse is 74%. As for the value of the stock, it grew from $54,000 (which is the capital inputted) to $94,970 which is quite a significant gain.
This was also earned through 6 months of waiting, and not much else. Of course, I always track the stock and there were times where I became a bit worried because the stock wasn’t going up as quickly as I wanted it to.
I also took quick profits for part of the position because the stock rose quickly and I knew that it was going to eventually hit some sort of resistance.
I ended up taking some of the profit there and reinvesting the capital elsewhere. For this investment, I made $40,000 in profit. Also note that this investment also aligns with Tip #1.
My second tip for you is to Understand the Strength of the Business Model.
For example, when looking at restaurant stocks during Covid-19, for the most part they would decrease by a lot and Chef Warehouse was one of them.
However, you will also find that some restaurant stocks such as QSR, a fast-food restaurant chain, will bounce back quite quickly. Chef Warehouse did not bounce back quickly, however I knew that it would be able to survive and deliver value within its restaurant network.
Although people didn’t notice it yet, I knew Chef Warehouse was going to be fine. I analyzed the financial statements and found that management is very conservative, they have a lot of cash on hand, and that their business itself is very healthy.
There might be a slight dip in revenue or profit in the short term but overall, their management makes rational and logical decisions to preserve the business as much as possible which gives me confidence in them.
Once you know how to conduct a fundamental analysis in a fairly short amount of time, say 20 minutes or so, then you too will have that confidence because you’ll know exactly what you’re looking for.
Here is the chart for Chef Warehouse. You can see that I entered near the bottom somewhere between $12-15, and the overall profit is still $40,000. The moment it jumped up after the election, I was very happy with the return of about 74%. I exited, and now I’m sitting in cash again waiting for the next opportunity.
The third and final investment is a bit ridiculous - American Express, which I got in early November the year before. At that time their Q3 results were just announced and for some odd reason, the market panicked and started selling American Express, which I know is a great company.
In fact, I was actually browsing Visa, MasterCard, and American Express at the same time and conducting a side-by-side comparison covering financials, business, charts, and all the other details in a critical analysis that I teach in Investing Accelerator.
After a thorough analysis across the three companies, I realized that American Express is actually undervalued compared to Mastercard and Visa.
When I look at the financial results, American Express actually recovers much faster than the other two companies whether you’re looking at the earnings presentation or the financials.
However, for some odd reason when you look at the charts, it doesn’t really add up. This is actually a signal of an opportunity, and you’ll learn how to do that in Investing Accelerator as well, once you figure out how to read financial statements and all the other analyses put together.
I bought American Express at a time when the market was shorting it, using stock options. I won’t go into too much detail about stock options here, but it was around $25 for the option.
If you don’t know what an option is, don’t worry. It’s quite an advanced topic and is complicated, but just consider it as a profit multiplier.
I invested this before the election happened when the market was scared, worried, and also going down which is how I was able to pick it up at a discount. I was planning to hold it for 12 to 24 months however, it shockingly jumped from $25 to $42.50 overnight.
After analyzing the situation in terms of risk and reward, I thought - What are the odds that you can make $42.50 from $25 in one week? So I took the profits and that was a return of 70% in one week.
Now for this position, I’m again sitting in cash and waiting for the next opportunity to happen. That’s a brief summary of my most recent three investments. I am a long-term investor, and now I have quite a healthy amount of cash.
This means that when the next opportunity comes along, I can invest in it, and I will keep you posted on the next time I exit.
What's up guys. So something amazing just happened this week. I exited three of my positions within my portfolio and the total profits is $73,000. So in this video, I want to dive deep into what kind of trades I made, which stock I invested. How did I make $73,000? And what is that in terms of return? And we're going to go through it one by one. So then you have a good understanding of how to do it. And I'll also include three tips when it comes to investing into stock market. So let's get started.
So the first doc we got here is actually C a E. It is a Canadian company. You can buy it in both us and Canada. And I purchased it after the Corona virus market crash. And you can see my exits trade right here. And during that time, you know, airline was not very popular. A lot of people don't believe that airline can recover so on and so forth. So what happened? It took a while, but then eventually the market has formed a bottom. And what's important when it comes to CAE is that I invest when it is not popular. You know, I like to invest in stock star, not popular is not momentum driven stock. Instead I focused on discounts. I focus on buying stocks, start at a deep discount. So at the bottom, you're going to see the calculation I got for CAE. My entry price is $14.92.
Now I invested in the U S version of the stock. So this is in USD. So you can go back to the charts and see where I invested. It's around May, 2020. So the price is fairly okay down in terms of capital. I put in $42,522. So that's approximately 2,800 shares or so, and afterwards I just held onto it because I understand CAE. I understand the business model. It provides trainings to pilots, and it's kind of like a software as a subscription, except for airlines, and understand how the contract works so on and so forth. So when you think about it, having such an in depth understanding of the stock, you're going to invest in is going to give you a competitive advantage and you can see it in this case. So I held on to CAE for approximately six months and below, you're going to see the profits and it is 44% across six months.
And I took profits earlier this week and the price is $21.50. And the market value is $61,000. So this is a gain of $18,753. So not that for six months of waiting. Now, you got to note that I didn't say six months of work because actually didn't do anything. I just invested in companies that are great at a discount with proper research and, uh, held onto it for six months. That's what passive investing or semi-passive investing is all about. And if you are looking to invest in discount to stocks, then here is tip number one. You want to invest in companies that are not popular at the moment. So when you invest right, you want to be looking for a discount. And if everyone is looking in the same area, you're not going to find discounts. You need to go to where people are not looking, then you're going to find discounted opportunities.
So in terms of the charts, if you're familiar with the charts, or if you have taking the free chart course I offer below. Then you may be familiar with the indicators I'm using. Now, in this case, you'll see that near the bottom of the charts, I have a couple of green lines and that is Ashley, the price I entered, and it will actually match back to the previous image. I show you where I enter into the stock. And right now the price you see, the latest price is the price I exited and that's approximately $28. Uh, so not that I still have some position for CAE, so it's not a full week sit yet. And I got to say, I'm pretty happy with six months of return. Now, the question is, is CA you're going to go up. Well, probably it's a great company, but am I happy if the return?
Yeah, totally. I'm happy if the return and that's, what's important now I'm sitting in cash and I'm just waiting for the next opportunity. So onto the next dock, which is chef warehouse. So for this stock, I actually entered around me as well after the Corona virus crash. And chef warehouse is kind of like a delivery network for restaurants in us. Um, and it's actually a stock pick that came out of investing accelerator. So that's pretty amazing. Thank you for the team. And when I was investing in this stock, I actually wasn't familiar with this company initially until I start doing research over it, understand the business model, understand what everyone is doing and how the market is looking at this stock and how it is being impacted. And after a careful assessment, I determined that, well, it's actually a good buy. And I got in at approximately $12 during that time I put in around $54,000 into the stock.
So it's quite a sizeable amount. And I held it for approximately six months. So in terms of shares, that's 4,500 shares. And for this doc, the recovery is actually faster than I expected. And it jumped up shortly after the election was over. And my gain as of last week was around 75% to 71%, depending on which transaction you're looking at. So the net return on chef warehouse is actually 74%. And you can see down below now when it comes to the value of the stock, it grew from $54,000, which is the capital I put in to $94,000, $970. So that is quite a significant gain. That is also for six months of waiting. And during this time I didn't really do much. I track the stock. And I guess there are times where I was a little bit worried because you know, it wasn't going up as fast as I wanted.
And I also took a quick profits for a part of the position because it went up and I knew that it was going to hit some sort of resistance. So that took some profit there and reinvested that capital somewhere else. But for this stock, it follows the same tip, as I mentioned earlier, is that you want to look at what is unpopular. And from this investment, I made $40,000 in profit. So that is pretty good. So tip number two, you really want to understand the strength of the business model. Now, when you're looking at a lot of restaurant stocks during the COVID time, it would go down a lot and chef warehouse is one of them, but you will also see some restaurant stocks, for example, like QSR, which is a fast food restaurant chain will bounce back quite quickly for a chef warehouse. It didn't bounce back that quickly, but then I knew that it is able to survive per se, and then still deliver value within its network to the restaurants, so on and so forth.
So even though people don't notice it yet, I knew chef warehouse is going to be fine. And when you're analyzing chef warehouses financial statements, you'll realize that management is actually very conservative. They actually have a lot of cash on hand. Their business itself is very healthy. There might be a slight dip in terms of the revenue or profit in the short term, but overall, you know, that management is making rational logical decisions to preserve the business as much as possible. So that's where I have confidence in them. And once you know how to do fundamental analysis in a fairly short amount of time, like 20 minutes or so then you will have that confidence too, because you know exactly what you're looking for. So this is the charts for chef warehouse. And in this case, you can see that I entered near the bottom somewhere between $12 to $15, depending on which position you're looking at.
Uh, I averaged up a little bit in this case. So the overall profit is still $40,000 in a moment that jumped up after the election. I was very happy with the return of 74% or so. So I just exited and I'm sitting in cash at the moment to wait for the next opportunity. Now, the third and the final investment, it's a bit ridiculous is American express. Now for this investment's Ashley got in early November at that time, the Q3 results with just announced and for some odd reason, the market panicked and starts selling American express, which I know it's a great company. And at that time I was actually looking at visa, MasterCard and American expresses at the same time. And I was doing a side-by-side comparison from financials to business, to the charts, to all the analysis that I teach and investing celebrator after doing a very thorough analysis across all three companies, I realized that American express is actually undervalued compared to MasterCard and faeza.
And when you look at the financial results, the recovery from COVID American express is actually recovering faster than the other two companies, whether you're looking at the earnings presentation, whether you're looking at the financials, but for some odd reason, when you look at the charts, it doesn't really add up. So that is another signal of an opportunity. And you'll learn how to do that too. Once you figure out how to read financial statements and all the other analysis put together. So during that time, when the market is shorting American express, I got it. And for American express, I used stock options. So I'm not going to go into the detail of the stock options here, but as around $25 for the option, if you don't know what an option is, don't worry, it's kind of an advanced topic is kind of complicated, but just treat it as a profit multiplier.
And I invested that before the election happened. Uh, so the market was still a little bit, you know, scared or worried, and the market was going down. So that's how I'm able to pick it up at a discount. And I was planning to hold it for 12 to 24 months as surprisingly within one week, it jumped up from $25 to $42.50 overnight, and it was surprising. And then after analyzing the situation, the risk and reward, I decided that, wow, you know, what are the odd stats? You can make $42.50 from $25 in one week. So I took the profits and that is a return of 70% in one week. So now for this position, I'm sitting back on cash again and waiting for the next opportunity to happen. So that's a brief summary of my most recent three investments. I'm a long-term investor. So right now I'm actually having quite a healthy amount of cash. Uh, so then when the next opportunity comes along, I can invest in it. So I'll keep you posted the next time I exit