This week, for me, was all about dip buying.
I’m not talking about Mr. Make It Happen’s internet-famous queso dip. That dip, though, is worth scooping up.
I’m talking about the dips in the stock market, specifically in the companies and ETF I invest in. Thanks in part to a hot consumer price index (CPI rose 3.5% in March compared to the same time a year ago, more than expected), all five dipped at one point or another this week … and I nibbled on all five.
Monday
Monday’s $10 went to Microsoft, which was down 1%-plus at the time I invested.
I’ve always admired the diversification of Microsoft’s business model.
The company can get you to pay it money pretty much no matter what you’re doing. Using Office products at work? Someone (hopefully your employer) is paying Microsoft. Hanging out at home, writing a newsletter on your Surface or maybe gaming on your Xbox? Satya Nadella and Co. are managing to monetize you at home, too. Not only that, but the AI tailwinds, all the cloud stuff with Azure, the attempt at gaining some search market share with Bing. I mean, Microsoft juggles a lot at once … but does it well.
I’m particularly bullish on the gaming business, which has been underperforming.
That could soon change, though, as one of Microsoft’s recently acquired studios, Blizzard Entertainment, just this week reached a deal with Hangzhou-based NetEase after a fallout in 2023. Long story short, titles like Diablo, World of Warcraft, Overwatch and Hearthstone are returning to China’s massive consumer base. That’ll mean more money for Microsoft.
Tuesday
Tuesday’s $10 went to Robinhood, down around 2% at the time of purchase.
Robinhood has been on a roll this year, up 46% year-to-date. My position isn’t up quite that much, but it’s still proven to be my best performer (+10.70%). I considered holding off on adding to Robinhood precisely because of that run, but I couldn’t pass up a nice red day when Mr. Market provided one.
Wednesday
Wednesday’s $10 went to SCHD, down about 1.5% when I hit the buy button on my Robinhood app.
SCHD is, and will continue to be, my top holding for the foreseeable future. I’m a retail investor and I’m not too proud to say I need the diversification and cash flow that particular ETF provides. I know there are higher-yielding ETFs out there, but I like the dividend growth SCHD is known for.
As long as the dividend keeps growing, I’ll keep investing.
SCHD is currently about 50% of my portfolio.
Thursday
Thursday’s $10 went toward Rivian as I attempted to catch a falling knife.
It was down 7.4% or so at the time of the purchase and did manage to climb a percent higher by the session’s end so, mission accomplished.
Rivian is my only losing bet (so far) … and the unrealized losses are adding up. My position, which is a whopping $50 or so, is down more than 16%. That’s basically equivalent to one of my daily $10 investments.
That’s the game, though. Stocks don’t only go up and, especially when you’re talking about an unprofitable company like Rivian, the stock is going to be volatile. I’ll continue to add, but only opportunistically. I might hold off on the next 1% drop, but if it falls another 7%-plus, I’ll throw another $10 its way.
The financials are a mess, but:
It recently won the top spot in Consumer Reports’ auto brand loyalty, a title Tesla once claimed. Rivian vehicles are also getting access to Tesla’s Supercharger network and new vehicles are on the way with the lower-cost R2 and R3.
Friday
Friday’s $10 went to Costco, down 0.3% when I pulled the trigger.
I told myself the day before, after adding to Rivian, “Self, if Costco is down tomorrow, even by the slightest amount, that’s where you’re parking your $10.”
Well, it was down … and I added.
My growth stocks were down more, but I figured all my positions needed a little love this week. Dip buying always makes red days more fun.
The week that was
I love sales and, in a way, I added to all my positions while they were on sale. If I repeat weeks like this one, buying companies I believe in — companies I’ve spent time researching to come up with a halfway decent investment thesis — I’ll be more than fine in the long run.
Do your research, market participants.
The market doesn’t always go up. So, you better be prepared to add to your positions when they go down.
Here’s a screenshot of the portfolio after Friday’s purchase … $10 a day for 72 days:
Are you a market participant?
There are more than a few ways to make money in the stock market, but you can’t take advantage of any of them if you don’t participate. Don’t have much money? Me either. I mean, I’m not investing huge chunks at a time — $10 every day — but it adds up fast. Consistency is key and, if I can build a million-dollar portfolio, anyone else with a phone, internet connection, and a little disposable income can, too.
If you aren’t already, start investing today.
Need a brokerage?
Investing is impossible without a brokerage. If you’re in need, I recommend Robinhood. Sign up with this link and we’ll both get a little something to brighten our financial futures. The best time to start investing was yesterday. Today’s the next best and, well, if you don’t start today I highly encourage you to pencil it in for sometime soon. Your future self will thank you.
Disclaimer: I’m a market participant, not a financial advisor. This is not financial advice … but it could change your life.