March 19th

Things are beginning to get a bit scary around the US and people are showing their fears. The grocery stores around Florida are beginning to show the signs of panic as shelves are getting emptied and people are trying to stay away from each other.

The CDC has now issued no gatherings of 50 people or more, sports have been shut down worldwide, and France has gone on lock down. I’m sure that the lock down situation will become more common as people cannot be trusted to stay away from each other, imo.

The E.U. has banned travel to and from for the next 30 days and business all over are shutting their doors. The panic is real and it looks like there are going to be a lot of businesses no longer around in a few months unless the government can step in and help.

The government has proposed some stimulus but we will see what actually happens there. Also the feds have slashed rates to 0, something that I believe was a mistake in the long run and financial stocks are seeing the sell off now.

The Markets

Remember how I had a lot of oil. Well that’s biting me in the ass right now. My holdings prior to the drop are looking abysmal, but I continue to look ahead.

The market is now down almost 30% from highs and seems to have found a little range to work in. I expect his thing to drop another 10-15% before it is all said and done.

Since my last post I have begun to put much of my 50% cash holdings to work in companies that I think will make it through this alright and give me a great long term reward.

The past few days activities:

March 16th was my largest capital deployment day:

New Positions:

Berkshire Hathaway (BRK.B) - Will keep adding here. Undervalued and the oracle will be deploying capital during this.

Verizon (VZ) - My favorites telecom company. This is in my value price now.

Occidental Petroleum (OXY) - Too cheap for me to pass up the risk/reward. Risk goes to zero, reward 4 bagger.

Added to:

DIS, VIAC, BP, CLF, HEAR, EAF, BP, RDS.B

March 18th:

New positions:

Starbucks (SBUX) - Just an unreal drop in the coffee leader. This company will survive and continue to thrive.

Southwest Airlines (LUV) - One of the airlines with a great cash position. This one will survive and a consolidated industry means more business for them.

Ulta Beauty Inc. (ULTA) - In my wife’s opinion, this makeup company is the only one to go to. Great debt positioning and I expect them to be another company that will gain more market share due to companies in the industry that are highly leveraged.

Home Depot (HD) - Starting position here. Expect it to drop some more but jumped into my buy price and so begin to add here.

Added to:

BRK.B

March 19th:

New Positions:

Bank of America (BAC) - Starting position. Financials have gotten slammed and they are well positioned to survive this. This is different than the financial crises due to these banks passing through multiple stress tests. Obviously the interest rate at 0% has a large effect but I expect money will be made here in the long term.

Bristol Myers-Squibb (BMY) - This pharmaceutical company is getting unfairly damaged. Taking a staring position here.

Added to:

BRK.B

HD

CLF