Today I further reviewed Berkshire Hathaway’s 13F and decided I would follow in Warren’s footsteps. As I sifted through the various buy orders that were executed I honed in on PNC Financial. Look at the below chart and you will see why.
PNC has been getting pounded over the last several months and investors have pushed it lower and lower. Despite this happening across the board among all companies; Berkshire believed there was intrinsic value within PNC financial that warranted these low prices as an entry point.
Considering the stock was hovering at $160 not that long ago and currently has a Price to Earnings ratio of 11 with a solid 3% Dividend yield at $3.8/share/year; this looks like a solid buy according to my own standards. I would like to thank Berkshire for putting the idea in my head.
Also like Berkshire; I did not add any capital to my brokerage account to make this purchase. I had $700 in there from unspent dividends and I used all $700 to buy 5 shares of PNC.
Do not worry if you are not at this point yet to make executions. Keep watching and keep learning. Eventually you will reach the point that I am at where the machine feeds itself and you do not have to consistently supply cash to it. I currently earn about $200/month in dividends so I should have that $700 back in three and half months.
One of my core measurements is time. How long will it take me to recover dollars spent. In this case; it will be three and a half months, but my ultimate goal is suppress that time frame to hours or even minutes. Yes, that is my master plan; to be able to spend $700 on a stock and recover all of it within minutes from another stock. Technically, that would set me on a target of $700 per day in dividends, which would be about $185,000 per year. This goal seems perfectly attainable to me and I will keep working towards it.
- Current Status: $700 per 3.5 months.
- Current Goal: $700 per 2 months.
- 2021 Goal: $700 per month.
- 2023 Goal: $700/week
- 2025 Goal: $700/Day
If this looks aggressive; it’s because it is. I hold myself to high standards. You should do the same!