As the final week of 2017 is at hand I realize that I still have not made my monthly buy(s). As everything cryptocurrency took over the headlines in recent weeks you can imagine that my focus has strayed a bit. Of course, my long term investing priority continues to be my dividend growth portfolio and I still plan to make at least one monthly buy as I have been doing for years no matter what’s going on in the world or financial markets. But, you have to admit, this whole crypto thing is pretty fascinating whether you have skin in the game or are watching from the sidelines. With that being said:
I have added to my taxable account 45.5711 shares at $17.56 for a total investment of $800.23 in General Electric Company (GE). With this recent purchase my taxable account holdings in GE now totals 303.6820 shares with a market value of $5,302.29.
I am well aware that this stock has not been a popular choice as of late and going into 2018 many questions remain about GE’s turnaround story. Of course, time will tell whether this purchase and my general holdings of GE will pay off in the long run. I’m willing to go against the grain on this buy at this time and average down my cost basis here. I have done it before with other stocks that faced certain doom like CAT, VFC, MCD, JNJ, HRL, GIS, DOV, GWW and many, many more. Going back five years or less, each of the stocks mentioned faced their own calamity and have managed to turn things around. I realize that every stock/company is different and that what happened in the past is no guarantee of future results, but if I had to guess if GE could mount a successful turnaround over time, I would. After all, my portfolio is spread among dozens of stocks and a GE falter would not endanger my collective passive income stream. This is why we diversify.
What do you think about my recent buy? Have you been buying in December as well? Please let me know below.
Disclosure: Long GE, CAT, VFC, MCD, JNJ, HRL, GIS, DOV, GWW
40 thoughts on “Recent Stock Purchase December 2017”
Nice recap, and I believe a good purchase. We’re considering GE, but we don’t have any direct holdings of GE at the moment.
Our current only individual holding is AT&T (T) as of a month or so ago. All our other equity exposure is in index or other funds. This will start to gradually change in 2018 as we continue to allocate working capital in our taxable investments.
Looking forward to your Dec 2017 overall recap as well. Thanks for continuing to share, DivHut.
Mike @ Balanced Dividends recently posted…Tax Reform & Your PFUI: Applying the 10 Heuristics
Whether it’s through funds or individual stocks, I plan to keep nibbling on GE at these depressed levels. I’m well aware of all the risks associated with the stock going forward but feel I’m sufficiently diversified with the rest of my portfolio to weather any more bad news. Look forward to seeing some of your individual stock picks in 2018. Thank you for commenting.
Interesting choice, although I remember you saying you were considering buying more. Guess with GE it depends on your position. If it is small, hold or cut lose and take the tax credit. Or if it is larger, hold and hope for a turn around, or buy more on the dip and wait for the turn around. Will be interesting to see what happens. My position is relatively small but I am still holding to see what happens. Might as well DRIP a few low priced dividends on the way.
Overall, my exposure to GE is relatively small compared to the rest of my portfolio. For now, I’m comfortable nibbling at these depressed levels and taking the long term approach with the stock. All GE dividends continue to be reinvested and I may even buy more in January should prices remain depressed. As always, I appreciate your comment.
Bold move. Every company has a chance for the turnaround. The Board, Management & Focus of employees to offer valuable services is the equation. Let’s hope that everyone on the page are on the same page. Hope this one works out very well for you.
No doubt GE has many risks associated with it these days but I’m willing to nibble at these depressed levels and average down my cost basis as well. I think the near and mid term pain the company and shareholders will be facing will be replaced by longer term pleasure in the form of a rising dividend and share price. Time will well of course. Thank you for sharing your thoughts.
I like the buy myself, and your very well diversified. So I see no major concern with the purchase here. Keep it going
Thanks for that encouragement. This is why we diversify our portfolios. Why not take advantage of a stock on sale knowing that your other holdings can pick up any potential slack that may come up with a dividend elimination or bankruptcy. For now, GE looks compelling to me. Of course, there will be a time when I’ll want to step back from the name should things remain stagnant and my overall allocation becomes too large for me to feel comfortable. Thank you for commenting.
I recently sold my shares. But I understand the argument to buy. The valuation is good and they still have a great name. Hopefully they blossom under new leadership.
Dividend Seedling recently posted…Added to my 4 shares of O to my position
More people seem to be selling GE than buying. Like you can understand my reason for buying, I can understand your reason for selling. For now, I plan to keep averaging down my cost basis and have a long, long term outlook for the stock and company before I would ever consider selling. Thank you for stopping by and commenting.
I think GE is a pretty solid buy here as long as you’re keeping a long term mindset. Realistically it’ll probably 3-5 years before management can right this ship and for the markets to adjust their valuation. But for many of these storied companies taking a shot on some shares when no one wants to own them usually works out over time. JNJ and MCD are two relatively recent examples where no one wanted to buy the shares when they were going through problems and the stock price just did nothing. Now that earnings are growing again at a solid clip the markets readjust the valuation and then everyone wants to buy.
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Well said. I have a very long term outlook for all my holdings. I think buying GE at these levels is akin to a sale price. Why not take advantage of a stock that’s on sale? I realize it’s cheaper for a reason but that doesn’t mean it can’t mount a comeback especially as we are witnessing many tough decisions already being made at the company. I’m OK buying a stock no one wants. Of course, time will tell how this pans out but as you mentioned, JNJ, MCD and may others like VFC, HRL, GIS, CAT, DOV were also in the gutter only to rise from the ashes. Thank you for stopping by and sharing your thoughts.
Good (and interesting) buy DH. And you are right, being well diversified minimizes any damage should a company falter. Its a good strategy and plan. Thanks for sharing. 🙂
My Dividend Dynasty recently posted…Looking Back at 2017 and Setting Goals for 2018
Overall, GE is less than 2 1/2% of my portfolio. While I would never be happy seeing any of my holdings disappear I feel sufficiently diversified to be nibbling on this stock at these depressed levels. If I can average down my cost basis too, that’s even better. Thank you for commenting.
Hello, DivHut. Although I’m not an owner of GE, and not looking to buy it, I don’t frown upon the purchase. Your portfolio is certainly strong enough to withstand GE going to $0, as unlikely as that may be. GE’s climb out of the depths of the financial crisis was certainly promising, but 2017 has been brutal. I’m hoping GE can turn things around, and that those buying here make a tidy profit.
As for me, no buying this December, but I’ve still got 3 days left. Happy New Year!
Engineering Dividends recently posted…Portfolio Thoughts (Dec. 2017)
Believe me, I get the opinion that GE shouldn’t be touched at all and your comment said it best that GE looked to be headed in the right direction, especially after the brutal financial crisis, but, 2017 proved to be an equally difficult year for the company. I’m confident in the rest of my portfolio to pick up any GE slack and will gladly buy when others are selling this industrial stalwart. As always, I appreciate your comment.
Good luck with GE. I’m still looking to exit my position and reinvest the proceeds elsewhere. Although we differ on this stock, I do agree with your contrarian strategy as it relates to historically good dividend paying companies. Tom
Tom @ Dividends Diversify recently posted…Do You Travel Abroad?
You definitely have a lot of company with individuals looking to exit GE. I understand that perspective too but have chosen to go the other way as you can see with this recent buy. We’ll see over the next year or two or three even what GE can muster up. Thank you for stopping by and commenting.
Grats on your buy. This stock aint for me. But if i held a position and didnt want to sell, its a great idea to average down.
Passivecanadianincome recently posted…Just Start
GE is definitely not for everyone. For a company that was once the gold standard for long term investing it has sure fallen down pretty hard from that stature. I guess, if I didn’t hold GE in my account I probably wouldn’t be buying either. But, seeing these levels was just a little too tempting for me to pass up the chance to average down on a company that could mount a successful turnaround in time. Thank you for sharing your thoughts.
Great buy DH. I have been researching the company lately and just can’t seem to pull the trigger right now. Maybe that will change but I dunno. I think averaging down is great and I hope this purchase works out well for you.
More Dividends recently posted…Benjamin Franklin: An American Life
For now, I feel comfortable nibbling and averaging down on my GE holdings at current prices. I know many are waiting for the magic $15 price as that would bring future earnings and valuation to a much more attractive and reasonable level than current prices but I still went ahead and felt comfortable nibbling here. We’ll see how things pan out over the long haul. Thank you for stopping by and commenting.
Great pick DH. I agree in past GE hasn’t made good decision, at least not shareholder friendly by any means, however, upcoming cost cutting, dividend cut and reduction in outstanding share after selloff SYF together with its exposure to O&G industry will hopefully bring positives moving forward. I also picked up GE recently myself as well. Good to have you as fellow shareholder.
TheDividendKarma recently posted…Recent Several Buys
These days it’s rare to read about people buying GE and I’m glad to see I’m not the only ‘crazy’ one out there. As you mentioned, GE has already taken several steps to right the ship and I think more pain and discomfort is on its way in 2018 but that should yield a stronger, leaner GE over the long term. Thank you for commenting.
You need some guts to buy GE at this moment, but on the other hand, you could be right. If it turns around you are making a lot on this one.
And with enough diversification, when not try it. Good luck with the purchase!
Exactly. My portfolio consists of dozens of individual stocks. A GE falter will not make or break my overall portfolio income generation. As I mentioned in the post, there was a time when CAT, VFC, MCD, JNJ, HRL, GIS, DOV, GWW and many, many more were all in the dog house and no one wanted to buy in, yet they managed to turn things around. I know, I know… every stock/company is different and there’s no guarantee that any stock, no matter its history, can mount a successful comeback.. but I’m willing to wager this one does. We’ll see.
I am holding on to my GE shares for now. I will not buy any at this time however and would need to see no dividend cuts/only increases for at least the next 5 years.
DividendFamilyGuy recently posted…October and November 2017 Dividends
It’s nice to read a comment about someone holding on to GE. Most are selling out of their positions and definitely not buying. Whether or not I continue to buy remains to be seen however I still reinvest all my dividends, GE included and can grow my position in that manner. As always, I appreciate your comment.
You’ve definetely got cohones to make this buy. It’s not for me but I can understand it. A very cheap entry price, I’m rooting for the turnaround for you in the next few years!
I think my cojones are of average size 🙂 As you can see, I didn’t bet the farm on the stock, just nibbled a bit. If prices remain at these levels I wouldn’t mind nibbling again. Time will tell if GE can mount a strong turnaround. I’m betting it does. Thank you for stopping by and commenting.
It looks like the stock is making new lows almost every week. I hope the turning point is around the corner. Looking at the 5 years chart, the stock is really cheap. Do you have a plan on when to sell? Are you going to trim some, if the stock gets back to high twenties level? Good luck!
For now the plan is to buy GE if it remains at these depressed levels. I’m not against nibbling on the stock again in January. I don’t plan to sell the stock for the foreseeable future either. Thank you for sharing your thoughts.
I can understand your point about the cryptoworld, same happened to me :)…
Interesting pick with GE and brave one as well, currently PPL seems to be very interesting as well.
Cheers and Happy new Year!!
Div.Income recently posted…Update IOTA Investment
Crypto can really suck you into a vortex. So many articles, sites, opinions, videos, etc. I think I have been able to separate myself a bit in recent weeks though now that I have an invested amount I’m pretty comfortable with. I know GE doesn’t have many fans these days but neither did any of the stocks I mentioned in the post at one time. I’ll wait and see of course. PPL is looking interesting as well as some other utilities like D and SO too. Thank you for commenting.
Good luck on GE. Sometimes it’s good to go against the grain. I also agree that it’s hard not to be fascinated by what’s going on in the crypto currency market. I just wish I had more money to play with. But, it’s good that you’re maintaining a long term perspective on your investments.
Dividend Portfolio recently posted…December 2017 Dividend Income Report
I have a long term perspective with everything I own. My stocks, crypto, comic books, gold/silver. I’m definitely more of an investor than a trader. We’ll see how that GE buy pans out over time. As always, I appreciate your comment.
Very bold! I recently did something similar with CAH, although maybe not as extreme circumstances as GE is in. Being diversified means making some of these moves. Good luck!
I’m comfortable nibbling on GE in the teens and holding for the foreseeable future. I realize there’s no shortage of bad news for the company in the near and mid term but I’m willing to ride it out and average down my cost basis in the meantime too. Thank you for stopping by and commenting.
Love the buy! As you know, I’ve been loading up on GE as well at these levels. I’ll probably continue to add more in 2018 as well if the prices continue to be depressed.
Two Investing recently posted…December 2017 Income
GE is a very polarizing stock these days. You either like it at these levels or don’t want to touch it. So far, it seems that most don’t want to touch this stock for the foreseeable future. I’ll continue to nibble if prices remain depressed. Thank you for commenting.