Monday, January 08, 2007

The new long only portfolio...buying Whole Foods:

I'm going to try another slant on my investing/trading. I'm too bearish. So I need to have a long only portfolio, not necessarily because my trading hasn't been profitable so far, but just to focus my mind on the long side of the market.
 
So I'm going to put £100,000 into the long side of the market (that's my thought of size at the moment anyway) over the coming weeks and months, gradually. And I'll keep track of my returns separately from my other trading. Hey, looks like I'm running a hedge fund AND a mutual fund now!
 
So to start...I've just bought a little over £9,000 of Whole Foods...it's trading around $46.25 right now, and I've bought £2/cent.
 
I've looked at this before, the stock has had some interesting price action, what with a warning recently that growth is slowing (but still respectable). Following that, the stock has had a decent slide. Reading Slate today reminded me of it, and the thought of them expanding internationally is interesting.
 
Plenty room for growth, and whilst I am a firm ANTI-BELIEVER that organic food is better for you OR the environment (pesticides were made for a reason, to kill bad things! and organic food production uses FAR more land to produce the same amount of food as regular intensive farming, so we better get chopping those rainforests down to make some space for these organic crops!), I think the "public" will embrace this more over the next few years. So demand will go up and growth will continue.
 
Will be looking to put on about 10 trades of ~£10,000 each...any comments appreciated and I'll look at anything!  Next one I'm considering is Motorola, following its recent warning that its numbers will come in below estimates. The 8% beating the stock took is making it look decent value. This is a great long-term tech play.


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