Thought process to build Julia's coronavirus portfolio?

April 11, 2020

Introduction

I do think that I can come out the good idea to build a portfolio, but in order to make it success, I have to write down my thought process, analytic viewpoints, and then follow up with good execution over years. I like to write down something for my coronavirus portfolio $641.00 dollars.

My analytic process

It is time for me to write a business plan for my $641 purchase of distressed industries because of coronavirus.

Here is the blog to document my purchase.

Here are highlights:

1. First, I should not take risk to buy one distress stock, instead I chose to purchase 9 stocks;
2. My worst scenarios, 3 out of 9 stock may go out of business; since cruise business may not be bailed out by US government; 
3. It is better for me to gain experience about more about business, how to invest; so I lower the shares to one share;
4. I will try to hedge on the way, if the stock continues to go down in next few months, I will decide to buy more if need;
5. I have to be humble. As a 53 years old, I do not have fund to purchase those stocks on full price;
6. I have less than 5% of my key largo asset on this stock portfolio; in other words, more than 80% are still in SPX (30%) and FTSE (30%). 
7. I like to keep those stocks at least 20 years; if I have gains on some of stocks, I will keep some of them. 
8. SPX will not go up 30% in theory in next 12 months, so it is better for me to take high risk stocks and then bet on better return in one of 9 stocks. 

My positions

I should call it a better name instead of coronavirus portfolio. 

I like to show my positions again in the following:

Transactions

Positions

Airlines

DAL, 2 shares, $23.23/ share, less than $50.00 dollars
AAL, 4 share, $11.33/ share, less than $50.00 dollars
LUV, 2 shares, $34.30/ share, less than $70.00 dollars

Cruiselines

CCL, 5 shares, $11/99/ share, less than $60.00 dollars
RCL, 2 shares, $37.56/ share, less than $80.00 dollars
NCLH, 5 share, $11.72, less than $60.00 dollars

Hotel and resorts

H (Hyatt), $51.40, 1 shares, $51.40 dollars
MGM, $15, 3 shares, $45 dollars

EXPE, $60.55, 1 share, $60.55