A Deep Look Into Phil Towns Portfolio

Speaker 1: Felt he was one of the investors that I started learning from when I got my teeth into investing about six years ago, so I got to say I owe this guy probably a lot of money, you know, through his podcast invested or his book, Ruwan Investing.

There’s a lot to learn from him. One thing that I have not done yet, however, is dug into his portfolio. If I’m honest, I’m very interested to see what such a smart investing mind is investing in in this day and age. OK, so first, what we’re going to do is go over the stock side of his portfolio, Filton, he owns 10 different stocks and his overall portfolio. Now, some would say he’s not diversified enough. I would disagree. If you truly understand the value and the fundamentals of the stocks that you own, 10 stocks is fine. So his first stock is Bank O.Z K. It accounts for twenty one point two percent of his portfolio and he owns two hundred ninety six thousand three hundred shares in the company, worth a value of six point nine dollars million. And Bank O.Z is not one of those major banks in the USA. There are regional bank headquartered in Little Rock, Kansas. But you know, they’re still a big bank. They have 250 locations and 10 different states across the USA. As of twenty nineteen, they had twenty five point five billion dollars of assets under management. So they’re of a relatively significant stature. You might have heard of them. You might have not. But they’ve got some very attractive fundamentals when you take a deeper look into their numbers. So at the time of making this video, they’re selling for 22 dollars a share and they generate two dollars and seven cents worth of earnings, giving them a very low PE ratio of ten point six. But arguably, even more interesting was the dividend yield that they pay. They pay a dividend of five percent, which, as we know in this market, is very good, considering that there have been strong and consistent with their dividend.

They haven’t decreased it since 2004. It’s absolutely a stock to look deeper into. Coming in at Foodtown, second largest position, and that’s STEM Morgan Co., this company is better known as that second part, ruga. So they are a firearm manufacturing company based in Southport, Connecticut. The company has two key parts to it. So you’ve got the firearms part which sells rifles, pistols and revolvers to distributors across the United States. And then you got the casting segments which sell steel casting and metal injection moldings. But, you know, this is an interesting investment from Flowtown. As we all know, the USA is facing a bit of strife at the moment. Let’s just say that and gun sales have spiked mostly, I’m sure, for self-defense, which is fine. So this is a company that could do very well and help protect Americans at the same time, those fund, Ruwan, holds around 62000 shares in this company, worth about four point seven million dollars. At a time of making this video, the stock sells for sixty five dollars a share under the ticker symbol Arjay. This is one of two real estate companies that Filton owns in his portfolio. So Imada Hoffler, they develop, build and acquire high quality office, retail and multifamily properties. On top of this, they provide construction and development services for third party clients. So basically, there are real estate investment company, but they’re focused towards those higher end investments. So we can see here some of the properties that they own and have built throughout the years. So it’s quite an expensive real estate portfolio. You could say that with regards to the stock, it’s not the biggest company in the world. The market cap is under a billion. But you know what that means? It means opportunity because less investors are analyzing the stock and it’s often stocks like these that are underpriced.

Boeing, OK, this is a company that has been drastically hurt after this lockdown, one of the worst stocks that you can have in a lockdown as a travel company. And obviously companies like Boeing who develop planes, well, no one’s using those planes and thus the company’s been hurt badly. I mean, just look at what happened to the stock in 2020. It got wrecked, basically halved its price in just a matter of months and fell down. He’s no dummy. He’s a value investor. And he’s added dramatically to his position after the stock crash. As of today, it makes up ten point three percent of his stock portfolio. He owns eighteen thousand five hundred shares in the company, worth three point four million dollars. OK, this is a different type of investment from Foodtown, so CFF industries don’t know if you’ve heard of them or not, but they’re a distributor of agricultural fertilizers. And just after going through their website and reading a bit about them, I do respect this company. You see, they’re one of the world’s largest producers of nitrogen and nitrogen is essential for plant growth and feeding the world. So this company plays a role in feeding the world and for all you socially responsible investors out there. I definitely look deeper into it. OK, we all knew this was coming through town, he’s obviously a big fan of Warren Buffett and he’s got a decent chunk of Buffett’s Berkshire Hathaway and his portfolio. It makes up eight point seven percent of its he owns 16000 shares and total assets worth two point eighty five million dollars. So that’s BKB stock, by the way. Definitely not the shares. So Berkshire Hathaway, it’s obviously the investing company run by one of the greatest investors of all time, Warren Buffett. So the great thing about being a Berkshire shareholder is every time Warren Buffett makes an investing decision and makes money, you make money because you’re the owner. And, you know, Berkshire’s made some of the greatest investments of all time. Coca-Cola back in the day, Geico, Duracell, Dairy Queen, obviously, Apple. That was a recent investment that paid huge returns. You know, Buffett, he truly is the king of investing.

Outer Beauty, a very interesting company for a town to be investing in, I don’t know, maybe Danielle gave him some tips with this one out of beauty as per the name as a chain of beauty stores across the USA. They sell cosmetics in skincare brands, men’s and women’s fragrances, now products, bath body products, beauty tools, hair care products, you know, the type of products that they sell. It’s a pretty simple business to get your head around, which both Flowtown and I both like. But as a stock, they have struggled over the past year or so. At one point in time, they sold for three hundred fifty dollars a share today. It’s a lot less around their 230 dollar mark. So if we take a look at it with regards to the real one investing portfolio, it makes up seven point one percent of it. He has eleven thousand five hundred shares and the company worth two point three million dollars. This is the second out of the two real estate companies that Phil Towne owns and is Investing Fund and Savatage Growth, they have a slightly different strategy compared to Imada, Hoffler, Savatage.

They’re focused on creating and owning revitalized shopping, dining and entertainment and mixed use destinations. So it’s more sort of big shopping centers that they own. They had a rough ride and 20/20. Obviously, people went out and the shopping malls buying stuff. If they were buying anything, it was probably on Amazon. So Savatage, they dropped in price. They went from 40 dollars a share to around ten dollars a share. And I don’t know when Flowtown bought, but I’m guessing it was after the job. He’s a value investor, so obviously he’s looking to buy stocks as cheap as possible. Savatage a total six point four percent of his portfolio, worth two point one million dollars, his eighth largest position. OK, two more stocks to go now, guys. Then I want to show you something very interesting to CFO is more bearish or bullish in this current market. All I can say with this investment is smart, smart investing from Foodtown exposing his portfolio to gold, so many top investors have done or are doing this. Gold is simply used as a stallholder of wealth for if the market crashes and if too much money is printed. I personally have the exact same investment as Phil here. SPDR Gold Shares Ticker symbol gold. It’s just an easy way to expose yourself to gold through an ETF. So this ETF, it holds twenty four point five million ounces of gold and vaults and is designed to track the price of gold. SPDR Gold Shares is one of the top ten largest holders of gold in the world.

OK, the last Dr. Phil Towne’s investing funds portfolio is Gildan Activewear. So this is a Canadian company, to be honest. I’ve never heard of them before, but they are a manufacturer of branded clothing, sport shirts, t shirts, fleeces, just good quality clothes, as it would appear. Now, Filton, he’s had a bit of a history with Gilden. He bought it back in 2011 when it had a big price drop and he certainly knows the stock well. So let’s just say he knows what he’s doing by holding it. So those are his 10 stock positions, Bank of Ozick, twenty one point two percent, RUGA number two, fourteen point four percent. Imada Hoffler Properties, eleven point one percent. Bowien number for ten point three percent. CF Industries nine point five percent of the portfolio. The Great Berkshire Hathaway eight point seven percent. Ulta Beauty seven point one percent. Cerita Growth Properties is six point four percent of the portfolio. Then he’s got the gold there at six point one percent and lastly Gildan Activewear at point two percent of the portfolio. But this is not his portfolio finished. Now I’m going to show you something that everyone should pay attention to. I’ve just showed you his stock positions. These make up only 35 percent of his overall portfolio. The rest of it is made up of cash. Sixty five percent of his portfolio is in cash and cash equivalents, as you can see, thirty seven point seven percent year and twenty seven point five percent over here.

This means one thing. Phil Town is waiting for some deals to come along in the stock market. In other words, he’s waiting for a crash. Yes, he has seen some deals in the market. He does obviously own some stocks to his portfolio, but most of it is made up of cash, which means he’s waiting for stocks to get cheaper so that he can deploy his money.

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