I firmly believe that for most people the best long-term way to invest is in a diversified portfolio of low cost index mutual funds or ETFs. That is where the majority of my investment money goes.
However, being a bit of an investment nerd, I want to try to beat the system and pick my own stocks. This portfolio is a very small portion of my investable assets. To put it another way, instead of buying shoes I don't need, I'm buying stocks I don't need; if they all tank tomorrow, life will go on as before.
What Stock Did I Buy This Month?
This month I bought two shares of Hanesbrands, Inc.
What Does Hanesbrands, Inc. Do?
Haneswear, Inc. makes underwear and active wear. Their brands include Hanes, Bali, Playtex, Champion and L'Eggs.
Why Did I Pick Hanesbrands, Inc.?
This month I decided to start my search for a stock at Morningstar. My library subscribes to the full version of Morningstar and I can access it from my home computer. I searched for five star stocks and then reviewed the list for companies with which I was familiar. There were two: Bed Bath and Beyond and Hanesbrands. My Loyal3 portfolio already has Target and Kohls so I didn't want another retailer. I decided to investigate Hanesbands further.
I then checked A Frugal Family's Journey's list of stock analysis post in 2016 to see if anyone had written about Hanesbrands recently, and I found that Dividend Diatribes had and that JT was at least interested in the stock.
I went back to Morningstar and read their analyst report written in October, 2016 which valued the stock at $39.00. Since I bought at $21.93, Morningstar believes I got a bargain. Gurufocus has a calculator which only gave a value of $17.63 but I didn't find that until after I bought the stock. Zachary Sturdy wrote about Hanesbrands for Seeking Alpha and he valued it at $28.49 per share.
I decided that when I thought underwear, I thought Hanes and I'm sure a lot of other people do too. At the price I paid, if dividends do not go up this year, I'll earn 2% . The expectation is that Hanesbrands will raise the dividend.
Where Did I Get the Money?
The money I invested in the Hanesbrand, Inc. stock is money paid as dividends in my Motif portfolio.
From Whom Did I Buy the Stock?
I purchased my Hanesbrand stock via Robinhood. I paid no commission and will pay no commission when I sell.
Did you buy any stock this month?
*Part of Financially Savvy Saturdays on brokeGIRLrich, and Racing Towards Retirement*