Omakase

Thursday, June 01, 2006

Other buys....

I've been remiss in mentioning other recent portfolio actions. Here's aquick summary:

I bought Vertex (VRTX) on May 22 @$29.70, as the company released stunning phase II HCV results. (read about it here: DDW: Novel HCV Protease Inhibitor Promising in Early Trial - CME Teaching Brief - MedPage Today

Happily, shares 10 days later are already up 16%!

I sold half of my Microsoft stock in order to buy twice the number of Microsoft LEAPs to expire January 2008. (I sold the MSFT shares @ $23.65 (a 15% loss) and paid $5.60 per $20 LEAP, meaning that I'll (theoretically) make money if MSFT is rises >8.2% over the next 19 months. (Or, less than 5% annualized.)

In reality, I'm counting on MSFT getting some good news over the next 2 years. Perhaps a lift from the next Windows OS, perhaps a lift from Office '07, perhaps a slip by Google.

Should MSFT grow at 10% per year, I'll have about a 41% return.

However safe this bet looks, though, consider that MSFT has pretty much been flat for 4 years now.

A few other moves that don't need much comment:
-with my '05+'06 IRA contributions, I bought 2 Fidelity overseas funds (FSCOX - overseas small caps, and FSEAX - Southeast Asia).
-I halved my FNMIX (emerging markets income) holdings in favor of more broad international exposure (EFA - the global ETF), and IWB - the Russell 1000 ETF, in order to catch a rotation to large caps.

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With my new friends on the Great Wall of China

With my new friends on the Great Wall of China
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Uncommon Man's Creed

"I do not choose to be a common man. It is my right to be uncommon -- if I can. I seek opportunity -- not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I wish to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole, I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence, nor my dignity for a handout. I will never cower before any master, nor bend to any threat. It is my heritage to stand erect, proud, and unafraid, to think and act for myself, to enjoy the benefit of my creations, and to face the world boldly and say, "this I have done." All this is what it means to be an American." -- Anonymous