Who doesn’t like new underwear… in their portfolio? Especially when it pays 8% in the first month! Just after statements went out last month we picked up a position in the income accounts that we’re very excited about.
Hanesbrands, Inc HBI is an apparel company that most of us are familiar with. They own the recognizable brands such as Hanes, Champion, Maidenform, Playtex, and L’eggs. Hanes is the number one selling apparel brand in the U.S. and is found in eight out of ten households, according to The Clever Contrarian.
The stock was down 25% in less than a year and is valued by the smart people of Morningstar 40% higher than it currently sells for, meaning it has a 40% upside. Based on that, we took the opportunity to invest for all income clients in hopes the price will head back towards fair value soon.
For the growth accounts we purchased a different stock. Mercadolibre MELI is South America’s version of Amazon here locally. Over one third of all people in South America have used the service and it appears to be on track for a similar growth track as Amazon – a stock we wished we bought in the growth account years ago. The start has not been as good for MELI, but we’re optimistic this will be a great performer in the long run.
Masters Degree
In other news, I’m extremely excited to announce an accomplishment I (Tim) have been working on for five years now. As of the end of last month I’ve officially finished my Masters of Science in Personal Financial Planning! I began working on the degree in 2012 and it resulted in obtaining the Certified Financial Planning (CFP®) designation in 2014 and now a Masters.
The best part of the schooling was the topics covered – investing, insurance, retirement planning, estate planning and taxes – are 100% applicable to the everyday situations we deal with here in the office with our clients. I’ve already had the chance to use the education in these areas on multiple occasions and I look forward to continuing to use it in the future.
If you have any questions about your current situation or portfolio, please don’t hesitate to contact us.
-Tim Porter, CFP®