#14 - New Position: Cheniere Energy $LNG

This week we discuss a new position recently added to the Freedom Fund, Senator stock trading ban update, and why Costco will keep rolling.

Big 3 Market Items

• Toyota $TM Invests in IONNA EV Charging Network

  • Tesla Supercharger Network competitor IONNA plans to install at least 30,000 charging ports in North America by 2030.

  • The joint venture consists of BMW, GM, Honda, Hyundai, KIA, Mercendes, Stellantis, and now Toyota & Lexus customers will get access to the network.

  • Toyota currently has two market EVs in the U.S. and Canada with the bZ4X and Lexus RZ. The company is aiming to offer 30 EV models worldwide by 2030.

• Senators Push Stock Trading Ban Agreement

  • Wednesday’s amendment to an existing stock trading ban bill would forbid members of Congress, the president and the vice president from purchasing stocks. It would also give lawmakers 90 days to sell their stocks.

  • Websites such as Quiver Quantitative have made it easy to view what stocks politicians are buying/selling even though the information doesn’t get reported 30-45 days after a transaction based on the Stock Act (long after the common taxpayers can take advantage of these position changes and information).

  • Between Chip & Science Act, Crypto Currency Regulation, and military defense moves there is a lot of information politicians get before every day Americans do which gives them access to making financial plays in the market before retail traders do.

  • This article from the Motely Fool gives good insight into which politicians had great success in 2023.

• Costco $COST Hikes Membership Fees

  • On September 1st the company plans to bump Gold Star memberships by $5 and Executive memberships by $10. This is the first hike in 7 years on fees.

  • $COST reported $1.1 billion in membership fee revenue in its latest quarter and $4.5 billion in all of 2023. The increase will impact about 52 million memberships, a little over half of which are executive memberships. This hike alone could generate ~$400m more per year in revenue.

  • There is lots of news about how their hot dogs are still staying at $1.50 for now. But the company grew its memberships over 7% from last year and these 9 Costco deals explain why Gen Z says it is the best value store in 2024.

Freedom Fund Update

Since October 2022 I started this public portfolio with the simple goal of investing $100-$200 every week into quality companies to build a diverse growth and income portfolio. And to show others that with consistency over time you can build an investment account of your dreams. Within 620 days since inception the Freedom Fund is closing in on $20k in value, holds 14 positions, and going forward averages $40+/month in dividends.

• 7/8 - Monday Special Purchase

  • 🚨New Stock Alert🚨 6 shares - $LNG - Cheniere Energy Inc

  • 2 shares - $SCHB - Schwab US Broad Market ETF

  • 1 share - $WM - Waste Management Inc

  • I had some extra $ sitting around in the account and decided to finally use it. See below for why I added $LNG to the portfolio.

• 7/12 - Weekly Friday Purchase:

  • 2 shares of $SCHB - Schwab US Broad Market ETF

  • A slice of of $MSFT - Microsoft

Freedom Fund Background: I created the Freedom Fund as a public brokerage account back in October of 2022 to share that anyone with a social security # and a bank account can begin their investing journey by investing a couple hundred dollars a week. Every week and month I post on X (@GrahamInvesting) public updates about the purchases, exits, dividends, and growth of the fund if you want to follow in real time. The biggest obstacle people have to investing is just getting started so I decided to start a new account at $0 to start from nothing with you.

New Position: Cheniere Energy

I have been looking to expand into a second energy-based position in the Freedom Fund and Cheniere Energy ($LNG) fits perfectly alongside my existing investment in the Blackrock Resources & Commodities Strategy Trust ($BCX). Cheniere Energy, Inc. is primarily engaged in the liquefied natural gas (LNG) business. Founded in 1983 and based in Houston, Texas, Cheniere Energy has grown to become one of the largest LNG producers and exporters in the United States. Here are the main reasons behind this addition to the Freedom Fund:

• Energy Diversification: Diversifying within the energy sector is important for maintaining a balance. By adding Cheniere Energy, I am increasing the Fund's exposure to different facets of the energy market. Cheniere's focus on LNG provides a counterbalance to the existing investment in $BCX, which may be more weighted towards traditional fossil fuels/renewables. This diversification helps mitigate risks and capitalize on various energy trends.

• Regulatory Support: Recently, a US judge halted the Biden administration's pause on LNG permits. This decision removes a significant regulatory hurdle for the industry. Regulatory support is a vital factor in the energy sector as policies and permits can significantly impact operations and expansion plans.

• Global Demand: The global demand for LNG is projected to grow substantially in Asia and Europe. $LNG is well-positioned to meet this growing demand. The company's established infrastructure and strategic export locations provide an edge in accessing these markets.

• Stability: Natural gas and LNG are recognized as stable and reliable energy sources that can complement renewable energy. As the world transitions to the use of renewables like solar and wind there needs to be a balance with reliable energy sources. LNG offers consistent energy supply that supports grid reliability. Cheniere Energy's role in this dynamic ensures it remains a vital player in the energy mix.

• US Export Leadership: The US is currently the top exporter of LNG, and this trend will continue as global demand increases. Being a major player in this market $LNG is set to benefit from the expanding international demand. The company's export capacity and partnerships position it to capitalize on the US's leadership in LNG exports, driving future growth and profitability.

Adding Cheniere Energy ($LNG) to the Freedom Fund solves some of my strategy of diversifying within the energy sector, recent news of more favorable regulatory conditions, capitalizing on global demand, stability through reliable sources, and tapping into the US's strong position in the LNG export market.

The purpose of Graham’s Gazette and my social account @GrahamInvesting is to help others get started and stay consistent on their own personal, professional, and financial journey. I appreciate the time you take in reading & interacting with me and look forward to growing together.

Thanks for investing your time reading this.

-Graham (@GrahamInvesting)

Disclaimer: Graham’s Gazette provides information and resources related to investing, financial topics, and personal growth for educational and entertainment purposes only. The content presented is not intended to be construed as financial advice. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial decisions. Graham’s Gazette and its creators do not assume any responsibility for the accuracy or completeness of the information provided nor do they guarantee any specific results from such use of information.