We buy 100 shares of Best Buy at approximately $74.11. As a result of the transaction, Jim Cramer’s Charitable Trust will own 1,000 shares of BBY, increasing its weighting from 2.12% to approximately 2.35%. Best Buy stock has fallen below the price of our last purchase, giving us the opportunity to make another additional purchase while also reducing our overall cost basis. The reason why we strengthened our position in electronics retailing has not changed. We still expect a rebound in PC demand, as we are now around four years into the Covid-19 pandemic, a period that saw many people rushing to upgrade their hardware for offices home. Four years is about how long most consumers wait before replacing or upgrading their PCs, especially when they rely on them for work. Additionally, the launch of AI-based computers provides a new reason to update to the latest models. Our belief that demand is coming was reinforced by Microsoft’s earnings release last week, when the tech giant reported that Windows OEM sales were up 11%, marking the third consecutive quarter of growth as PC market volumes have returned to pre-pandemic levels. While we wait for the PC rebound to manifest, we slowly strengthen our position at increasingly better stock prices. In the meantime, we are rewarded with a solid 5% dividend yield. This is an excellent return, even in a higher rate and longer term environment. But it could become even more attractive – and likely entice more buyers to step in – if interest rates fall. (Jim Cramer’s Charitable Trust is long BBY. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
cnbc
