Summary
- Now that my retirement portfolio is recession ready, with zero margin and a total focus on blue-chip dividend stocks, I'm able to aggressively buy deep value stocks again.
- Bristol-Myers is one of my favorite "fat pitch" blue-chips right now, thanks to Wall Street's overreaction to its risks making it 25% to 28% undervalued right now.
- Last week, I was able to open an initial position at $46.52 with plenty of cash left to keep buying if it were to fall even lower.
- While the Celgene merger is going to be complex and result in a highly leveraged balance sheet, the new Bristol-Myers is going to become an FCF minting machine capable of delivering safe dividends and 15% to 26% long-term total returns.
- If you're comfortable with the risks inherent to big pharma, I consider Bristol-Myers a very strong buy today. Just make sure to size your position for good risk management (my personal limit is 5% of my portfolio).
(Source: imgflip)
Like many of you, I've made plenty of investing mistakes over the years. But as long as you learn from such errors and continually improve how you run your portfolio, then achieving your long-term financial goals becomes very attainable.
Recently, I explained how I've completed recession-proofing my retirement portfolio (where I keep 100% of my life savings). That mostly related to improved risk management, including eliminating all margin, high-risk stocks, and instead focusing 100% on lower-risk, high-probability "fat pitch" deep value opportunities. That includes the top 5 deep value blue-chip recommendations off a new watch list that's running my retirement portfolio investing strategy.
