The Next Stock I'm Going To Buy

I’ve had my eye on a couple of different stocks for a while now: Badger Meter (BMI​) and Verisk (VRSK​).

To me, both look like great businesses. Fundamentally, they’ve both continued to grow consistently, they both pay a nice and growing dividend, and both are down around 50% over the past year.

If I’m being completely honest, I’ve been a bit torn about what exactly I want to do with these two companies. Should I add them both to my portfolio? Should I add just one? If so, which one?

At the same time, I also look around my portfolio and see quite a handful of other opportunities that seem attractive right now too.

For example, I think Main Street Capital Corporation (MAIN​) looks like a good buy, and I’ve been taking advantage of its recent pullback to add more shares, which I haven’t been able to do for a couple of years. That’s been fun.

I also think other holdings of mine like Lowe’s (LOW), Blue Owl Capital Corporation (OBDC​), VICI Properties (VICI​), and Zoetis (ZTS​) all look like good buys right now as well, which only further complicates things when it comes to BMI and VRSK.

On one hand, I tend to think you should prioritize the businesses you already own. If you already have high conviction in a company, there’s a good argument to be made that building out those positions should take precedence over adding new ones.

But on the other hand, I also see the case for being completely indifferent about whether or not you already own a stock. This side would argue that the best opportunity is the best opportunity, regardless of whether it’s already sitting in your portfolio.

Needless to say, I’ve been grappling with those two opposing ideas quite a bit lately. A lot of you have been asking me when I’ll finally buy BMI and/or VRSK, and the truth is that these exact thoughts are what have kept me from already doing so.

It’s a good problem to have though. I feel fortunate that I can look around the market right now and find at least a few businesses that I want to own, or own more of.

At the same time, too much of a good thing can definitely make decision-making difficult.

An abundance of attractive opportunities has made me hesitant, and what I don’t want to do (and what I don’t think an investor should do) is let that hesitation turn into complete abandonment.

This is the fun, but tricky part of investing in individual stocks. When you’re dealing with an uncertain future, you never really know what the “right” decision is ahead of time.

You can’t let that stop you though. At some point, you have to make a decision. Sometimes you just have to jump.

Realistically, I’ll probably end up adding one of these companies. And at the moment, I’m leaning toward VRSK.

Will it end up being a good decision? I honestly have no idea. Only time will tell.

But I’ve really come to appreciate the business. The more I learn about it, the more I like it. And as a collector of businesses (much like a collector of watches), VRSK feels like the kind of company that I ultimately want in my collection.

For better or for worse, that’s what my gut keeps telling me. I’ve been sitting with these thoughts for the past few weeks, and I can’t seem to shake it.

More than anything, this week’s article is really just me thinking out loud and sharing some of the thoughts that have been bouncing around in my head lately. But I’d love to know what you think.

What would you do in this situation? Do you think it’s best to prioritize stocks you already own, or does it matter? Let me know in the comments below!