TRADE ALERT: Buying BAE Systems

At market order issued

I have just placed an order to buy BAE Systems (BA.LSE), the UK-based global defense firm. The British Prime minister has just announced a significant increase in UK defense spending that will continue for a decade. Other European leaders will likely back this up as they are forced to rethink their defense capabilities in the light of a changing world order.

BAE operates in many of the emerging technologies we follow. Last year, they bought Bell Aerospace, expanding their space capabilities, and made two acquisitions in the drone industry.

They have significant 3D printing capability and are heavily invested in quantum computing, especially integrating quantum-safe architecture into high-value military systems.

The investment aligns with the stated plan of reducing the geographic concentration of our investments in the US and the sector concentration on new energy. We recently exited both of our large company investments, META and MSFT, so this investment helps balance the portfolio a little.

I will publish an article on BAE on the SeekingAlpha platform early next week but have decided to buy today following the UK prime minister’s announcement.

The technical chart below shows this is a reasonable but not an excellent time to invest, however it could be the only chance we get in the coming months.

I will update you when I receive the price for the order; it is set as a mid-market order to buy 25 shares.