I’ve been on a shopping spree these last few weeks. I added on to my stake in Chubb Limited and bought two new stocks. Unilever (UL) has been on my watchlist for years but I decided against it given my large position in P&G. Unilever is essentially the P&G of the United Kingdom. I also purchased 10 shares of Take Two Interactive, the gaming company behind Grand Theft Auto and Red Dead Redemption. TTWO, like Amazon, is outside my traditional investing strategy. However, the care that went into developing Red Dead Redemption 2 is unparalleled. Also, given the company’s recent price decline, I decided to pick up a few shares while they were on sale.
Unilever, like P&G, is one of the world’s largest providers of consumer packaged goods and headquartered in the U.K. The company does business in nearly 200 countries and sells roughly 400 brands. These brands include Dove, Lipton, Ben & Jerry’s, and Hellman’s. Unilever is in a strong financial position with a market cap of approximately $150 billion and total debt of only $29.3 billion. Sales have increased handsomely in the past three years and are projected to increased substantially in the coming years. The starting dividend yield is around 3.3% with a payout ratio of 60%. Unilever was the safe purchase given all the market volatility. The company offers some price stability in the $50 range with a decent starting yield.
My second new position was in TTWO. As I mentioned, I was blown away by the development and care put into Red Dead 2. I purchased the game a month ago and can’t put it down. The story is just as good, if not better than a cinematic western movie. The graphics are beautiful, the gameplay is smooth, and the voice acting is surprisingly diverse. The map is absolutely gigantic and feels like a living breathing world. From a financial standpoint, the game is one of the best-selling pieces of media ever, edging out Avengers Infinity War. The game sold $725 million in just three days with Red Dead Online poised to provide a stable revenue stream for years to come. TTWO is a risky play however as revenue moves up and down depending on the games released.
So yes, already three buys for the month of December! I recently got a lot of personal big-ticket expenses out of the way. I bought a house, renovated the interior, and accumulated a lot of new “stuff”. With these expenses now out of the way I feel more comfortable accelerating my stock purchases. I also have an adequate emergency fund if challenges arise. Even better, the market corrected, paving the way for some deep discounts. Chubb Limited and Unilever are near recession proof businesses with safe, stable dividends. TTWO is risky but represents a very small interesting position. In any case, these positions still work towards the long term goal of financial freedom. Depending on how the market moves in the coming days, I may continue to add new positions.
DISCLAIMER: I am long on UL, TTWO and CB. I am not a licensed investment adviser or tax professional. I am not liable for any losses incurred by any parties. This blog should be viewed for entertainment and/or educational purposes only. Any transactions published are not recommendations to buy or sell any securities. Please consult with an investment professional before making investment decisions.