I'm writing this piece of art close to midnight.
Yes. It's close to midnight and something evil's lurking in the dark...
That something evil is of course Coronavirus. The biggest threat to humanity since the meteorite that hit the earth 65 million years ago and killed all the dinosaurs.
That new threat makes people crazy. For instance, everybody is now completely mad when they see a toilet paper roll. People can kill for that. Yes my friends. These people probably expect that they'll have to hide in their basement for months and don't want to have to wipe their asses with their clothes or against the corner of a wall.
And after all that, some of you will still believe that we have an immortal soul because we are special.
So, what about the Penetrator Portfolio, since that post is supposed to bring something about it?
Well, first, all the major indexes (Dow Jones, S&P and TSX/S&P) are down 17-19% since the beginning of 2020.
The Penetrator portfolio is down 9%. Isn't it great to have such a negative performance?
A few statistics about the Penetrator portfolio:
Number of stocks held: 23
Number of canadian stocks held: 5
Number of american stocks held: 18
Average ROE: 53
Average forward PE; 20,5
Average Beta: 0,83
Average estimated growth: 16%
Cash on hand: 0,9% of the portfolio
Note: the forward PE and the estimated growth are pre-crisis. Probably that this huge madness will have a significant impact on earnings and the actual growth will drop. This would mean that the current PE ratio of my portfolio would be lower than the reality (instead of a PE of 20,5, it could be something like 23-24). Well, I don't know, so I'm keeping the latest numbers available.
One thing is sure for me, many stocks are cheap. For instance, Ulta Beauty is currently sold for 14 times the earnings. OK, the growth may not be what it used to be, but fuck, that's still a good company with very predictable cash flows.
A low beta portfolio is very useful in times like these. A little less useful on a bull market though.