Well, I haven’t posted here in quite a while. April 1 seems like a good day for an update. This is after all the official anniversary of the birth of Apple Computer (now Apple, Inc.), which has been the bulwark of BSMF since its inception. AAPL is still the largest individual holding by percentage of the fund, and it’s reaching new highs again after being kind of stagnant for a while.
We’ve been pretty slothful at BSMF for a while. Most of the activity over the past year has been moving dividend income into growth stocks. We’ve put our dividend returns into NVDA and TSLA.
Nvidia (NVDA) is the technology company largely behind autonomous cars – a rapidly growing technology. Almost all of the “driver assist” technology in new cars can be traced back to NVDA. Uber has self-driving cars in their fleet, now. This is only going to get bigger.
Tesla (TSLA) receives some negative press because of the car business. The cars aren’t coming out quickly enough, aren’t powerful/sexy/fast enough. All of those are subjective arguments with varying degree of truth to them. Tesla, though, is not just a car company. The BSMF investment in TSLA is more focused on the larger scope – which is the founder, Elon Musk. Solar City is now a Tesla company, and SpaceX, while not officially under the Tesla umbrella, is still and Elon Musk conjuration. Elon Musk still has a lot of ideas that he is pursuing.
SpaceX, which is not yet publicly traded as I write this, has achieved the holy grail of space flight. It has reused a first rocket stage (main engine) to achieve orbit. The first rocket stage is the single most expensive part of a space launch – by a lot – and until now they have been discarded after one use. The ability to reuse the main engine multiple times will make space exploration affordable – even cheap.
In short, the investment in TSLA is an investment in Elon Musk, who is still young with a lot of room for upside as he continues to push forward with new technologies.
BSMF will continue to hold TSLA, AAPL, and NVDA. We are also actively looking for companies on the leading edge of technology, while keeping our feet firmly planted in companies that pay regular dividends – industrial, energy, and consumer companies whose relatively stable stock prices minimize the effects of downward market fluctuations.
The biggest move we’ve made in the past year was made when we recently sold a few shares of AAPL to increase our holding in NVDA. Also we have to keep any single company from becoming too much of the overall portfolio, and AAPL was getting there with their recent big run up.
I’ll try to update this a little more often, going forward.