Jan 8, 2019

The Dream Home Portfolio

can you invest in the hgtv dream home 2019? no you cannot. but you can invest in its sponsors. i asked myself what would that portfolio look like? i went through and picked out all of the publicly traded companies that sponsor the sweepstakes to craft dream home portfolio.

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Lumber Liquidators (LL)

responsible for the beautiful hardwood found in the dream home, lumber liquidators operates as a multi-channel specialty retailer of hardwood flooring, hardwood flooring enhancements and accessories.

since its IPO in 2007, the share price has gone from $11, all the way up to $120 in 2012, and back down to $11. i feel it may have bottomed out and i'm confident in this investment. if it's good enough for the dream home, it's good enough for my portfolio

Wayfair (W)

wayfair is an e-commerce business that offers approximately 10 million products for the homes sector under various brands. furniture, décor, decorative accents, etc. i'm assuming the dream home is furnished with plenty of wayfair products that i can review once i move in.

W is down 37% from its 52-week high of $151, and has missed its earnings estimates the past three quarters. the 1-year chart however looks like it's forming a double bottom, and is also about to break through the 20 day moving average, which could mean a reversal.



Masco Corporation (MAS)

while not a direct sponsor of the hgtv dream home, masco is the parent company of delta faucet, one of the sweepstakes's sponsors which makes faucets. i hope the dream home kitchen has the faucet with the splash guard. check this shit out.

masco stock has been on a steady decline since the start of 2018 but i'm willing to bet i'd make out with a decent return if i held it long enough.

Sherwin-Williams (SHW)

the sherwin-williams company develops, manufactures, distributes, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers.

sherwin-williams has the highest share price of the stocks in our porfolio, sitting at just under $400 as of today. aside from the decline in Q4 of 2018, it has been on a steady climb since 2009 (share price $47). i think the recent drop allows me to grab it at a bargain price.

Honda Motor Company (HMC)

honda makes cars. i don't need to explain this one.

there have been a lot of ups and downs in the past 10 years, but the stock has pretty much moved sideways. it does have a decent 3.75% dividend though.


Trex (TREX)

trex company, inc. manufactures and distributes wood/plastic composite products, and related accessories primarily for the residential and commercial decking, and railing applications in the united states. have you ever been on one of those fancy decks that doesn't get hot in the sun? maybe it was a trex. i don't know.

trex stock has declined significantly in the past 5 months, which CEO jim cline attributes to 'normal seasonal trends'. if we take his word for it, we could see its share price back up in the 80s (current price $65) come spring.

Sleep Number (SNBR)

sleep number corporation provides sleep solutions and services in the united states, which is a fancy way of saying they sell beds. i hear they're comfortable but i've never had one myself. my sleep number is about 8 or 9 cans of pbr.

their stock is pretty volatile but is following a long-term up-trend since 2009. of course past performance of no guarantee of future results but whatever. we'll probably see it drop back into the 20s before heading back to the 40s in a couple years.

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using investopedia's stock market simulator, i spread $100,000 between the 7 companies listed above. here are our starting positions:

Symbol Shares Price Current Value
LL 1000 $10.63 $10,630.00
W 146 $94.75 $13,833.50
MAS 440 $31.70 $13,921.60
SHW 46 $394.82 $18,161.72
HMC 500 $28.44 $14,220.00
TREX 215 $67.72 $14,128.73
SNBR 438 $33.42 $14,637.96
Total: $99.533.51

i'll check back periodically to see how it fares against s&p 500.

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total entries: 24

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