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COMMENT
Central banking policies top of mind the past few weeks.
US Federal Reserve hawkish announcement worth noting.
Leaning towards a defensive portfolio in light of inflation.
Feels equities are the best use of capital at the moment.
Cash and fixed income low returns.
Avoid uncertain business models, or low yield businesses.
BUY
A number of different business units with potential.
Likes Johnson & Johnson as it is a well run company.
Very inexpensive stock with free cash flow yield is ~5% and forward P/E ratio at 16x.
Executive stock compensation is reason why buybacks aren't reducing share count.
Share buybacks are popular because managements can understand own business model better that alternative use of capital.
biotechnology
pharmaceutical
BUY ON WEAKNESS
Thinks that Walmart is interesting because online platform is strong. However, playing catch up to Amazon.
Walmart having difficult time convincing investors it is better than Amazon or Dollar Tree.
Current valuation doesn't imply reason to buy.
Wait until there is a pullback before buying.
department stores
BUY
Very unique business that is able to create and monetize original content.
Doesn't think that Covid-19 will have long time effect on theme parks.
Streaming business is doing very well and will be valuable down the road.
High P/E Ration (~30) is justified as the business is valuable.
As economy re-opens will do even better.
Quarter to quarter announcements are not a good indication of value.
entertainment services
