Make Money Investing The Warren Buffett Way
For my long term portfolio I bought the following:
Added shares of Nike (NKE) at $55.35
Bought shares of Endo Pharmaceuticals Holdings (ENDP) at $16.65.
For my short term portfolio I bought the following:
ProShares UltraShort S&P500 (SDS) at $55.90.
ProShares UltraLong Basic Materials (UYM) at $18.50.
ProShares UltrasShort Real Estate (SRS) at $20.
Added more shares of ProShares UltraShort Financials ETF (SKF) @ $76.00. This sector has been on fire and I continue to believe that it is due for a pullback. I will be paying close attention to bank earnings when they are reported next week.
Added more shares of ProShares UltraShort Real Estate ETF (SRS) @ $38.50.
Bought more shares of UltraShort Financials ETF(SKF) and UltraShort Real Estate ETF(SRS). There are rumors that the SEC will reinstate the uptick rule thus making ETF’s like these irrelevant. I think that these ETF’s are a solid option right now as financials have experienced a huge run up over the past month.
I sold off some of my Mittal Steel(MT) shares. The stock has risen over 24% in less than a week and I figured that it would be best to take some profits.
Sold half of my position in Alcoa at $11.42 for a 24% return. I am holding on to the other half to see if the upswing continue.
I’m glad that I sold my short position in SRS on Monday. SRS has declined to $52.47 per share.
Sold off 100 shares of Proshares UltraShort Real Estate ETF(SRS) at $62. This was after the $4.56 distribution declared last week which would make my exit price over $66. There could be more upside to SRS but I never invest long term in any short position. I sell short positions once I have made a profit.
Added more shares of Proshares UltraShort Real Estate (SRS) at $58.80. I have been able to lower my cost basis by purchasing majority of shares in the $50′s. The same position that cost me under $10,000 now would have cost over $40,000 just a month ago. I figure that the commercial real estate market still has plenty of room to decline. The commercial real estate market is suffering from deteriorating market conditions. The US commercial real estate market is experiencing rising vacancies, declining rents and debt financing problems. Commercial real estate is not expected to bottom until the end of 2009.
Bought more shares of Proshares UltraShort Real Estate(SRS) at $54. SRS has taken a nose dive from the mid $200′s to the mid $50′s over the last month.
Sold Goodyear at $6.60 for a 7% gain.
Bought United States Oil ETF(USO) at $35 level today. Crude Oil declined to $42 so I started a position. Oil could still drop further but I am comfortable buying at this level.
Bought Crude Oil ETF(UCO) at $16 today.
Added shares to UltraShort Real Estate ETF(SRS) at $65 and $68.
Added shares to UltraShort S&P500 (SDS) at $80.
Added shares of Proshares UltraShort Real Estate ETF(SRS) right at market close. This real estate exchange traded fund tracks twice the inverse price of the Dow Jones U.S. Real Estate Index fund. This ETF has declined from $260 a share just three weeks ago to $77. At below $80 it was too tempting not to buy. I think real estate is bottoming but I expect it will decline in the near term.
