Thanksgiving break is coming up, and for the first time in a long time, I had a full day to myself, which allowed me to take a look at the balance sheet for the investment fund. At the time of this writing, $1,426.65 sits on the balance sheet in assets. Kenvue makes up $629.23, with a cost basis of $21.80 for 26.131 shares. I started buying shares in the company back in June when shares were around $18.03. I had, and still have, a certain share price in mind that I want to purchase shares under and will continue to add until I feel that another opportunity snatches my attention. Nike is doing that to me right now, and I have been accumulating a position in the company as well.
So, why am I buying Kenvue for the investment fund? There are three main reasons: 1) Portfolio brand names, 2) Stability, and 3) Cash printing machine. I prefer companies that have a long history and a track record known to the public. In the case of Kenvue, it’s a spinoff from its parent company, Johnson and Johnson, which I do not own. However, the brands that came along are well known and beloved by American consumers, and I don’t see them going anywhere, which leads to the stability of the company’s balance sheet in the long run.
This means the company is not going to make an investor rich overnight since most of the growth is baked into the valuation of the company. However, this makes it a mature company in the sense that it will continue to send out dividends to investors that will increase year over year. I am somewhat of an old-school investor and prefer investing in companies with solid dividends.
This, however, doesn’t mean I don’t appreciate capital appreciation, which I do. But I am not one to chase dividend yield or growth at the cost of future gains that provide stability in the long term. For example, I hold oil in the personal household accounts. Anyone familiar with oil knows about the booms and busts—that investors are paid to weather the storm during downturns. In the long run, I know the shares I hold in oil are stable for my family, whereas I can’t say the same for companies like Tesla.
I understand my own circle of competence, as Warren Buffet puts it, and I am not ashamed to stay within it, even when I see the riches others seem to be gaining around me. This approach has done me well and has stood the test of time when others that seemed to be outpacing not only me but the market actually lost more. Some do get lucky if they sell some of their shares for profit, but most are left holding the bag in a company that has no proven track record or unreliable dividend that ‘hides’ the problems on the balance sheet.
I always knew and understood from years of studying that if I wanted wealth and long-term wealth, I was going to have to swallow my pride and understand what kind of investor I am and where I do well, even if that means missing out on other gains or options out there available to those who turn to the stock market.
As I write this, I am listening to some of my favorite classical pieces that bring out the warmth of cash flow, the ambiance of old-school wealth flowing and pouring into the coffers of both the household and private fund accounts. Give it a listen, and allow yourself to get lost in it.
It’s humbling.
It’s how you should feel when building a portfolio of solid companies that will take care of you and your family for a lifetime. There is no rush of excitement or arrogance. It’s the sound of harmony, the sound of coins trickling into your accounts as you accumulate shares in decent companies over the years. It’s a beautiful piece for a life of wealth and financial needs being met.
The Broke College Student 
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