Portfolio Six Updated August, 2014

Portfolio Six is three years old.  The beneficiary contributed $1000 and the trustee contributed $2000 for a total of $3000.  The current value of the portfolio is $3560, for a gain of $560 or 18%, which works out to about 12% / year.  The details can be found in the link on the right or go here.

The portfolio is doing well.  We sold Yandex the Russian search engine at the start of the Russian invasion of Ukraine.  There are four stocks in the portfolio and we plan to add two more this year.

Portfolio Five Updated August, 2014

Portfolio Five is 5 years old, with the beneficiary contributing $2500 and the trustee $5000 for a total of $7500.  The current value of the portfolio is $9352 for a gain of $1852 or 25%, at an annual rate of 7.4% / year.  You can see the detailed portfolio in the links on the right or go here.

Strong performers include the Australian Bank Westpac and Sasol the African energy company.  There are 9 stocks in the portfolio and we plan to add 2 more this year to get past 10 which helps us with diversification so that if one stock falls a lot the whole portfolio won’t be significantly impacted.

 

Portfolio Four Updated August, 2014

Portfolio four is five years old, with the beneficiary contributing $2500 and the trustee $5000, for a total of $7500.  The current value is $10,330, for a gain of $2830 or 37%, which is about 10.9% / year adjusted for the timing of cash flows.  You can see the detail in the link to the right or here.

Portfolio four overall is doing well.  There are 10 stocks in the portfolio and we plan to add two more this year.  Big gainers are Westpac, the Australian bank, aided by currency moves (see post below) and Garmin.

Portfolio Three Updated August, 2014

Portfolio Three is our third oldest portfolio, at seven years old.  The beneficiary contributed $3,500 and the trustee $7,000 for a total of $10,500.  The current value of the portfolio is $13,472 for a gain of $2,972 or 28%, or 6.2% over the life of the fund.  Click on the link to the right or here for details.

The portfolio has 8 stocks and is doing well.  We sold Splunk for a gain and Cliffs for a small loss when they hit our stop loss mark earlier this year.  Our current portfolio is reasonably well balanced and the stocks are doing well.  We have $2713 in cash and if we add $1500 this year between the beneficiary and trustee we will have $4213 to invest in stocks, which will allow us to add three more and continue to diversify the portfolio.  Portfolios of over 10 stocks (that are all different) are considered reasonably diversified and we need to add a few more to reach that target.  We will also need to add a couple more over the upcoming years because a few of the stocks (the Canadian banks) are closely correlated.

Portfolio Two Updated August, 2014

Portfolio two is our second longest lived portfolio, at over ten years.  The beneficiary contributed $5000 and the trustee $10,000 for a total of $15,000.  The portfolio value is $25,300 for a gain of $10,300 or 68%, which works out to about 9.3% / year over the life of the portfolio.  You can see the detail of the portfolio in the link on the right or go here.

The portfolio is doing well now, and we recently sold Splunk when it hit our target price.  The portfolio did well on Facebook, buying near the post IPO nadir and riding it up to more than 3 1/2 times the purchase price.

There are 15 stocks in the portfolio and $3331 in cash; if $1500 additionally is contributed by the trustee and beneficiary there will be $4831 in cash available for stocks.  We will buy three stocks in larger amounts and try to keep the total portfolio at 20 or less stocks over the next few years.

Portfolio One Updated August, 2014

Portfolio One is our longest lived portfolio, at thirteen years.  It started right after 9/11/01.  The beneficiary has contributed $6,000 and the trustee $13,500 for a total of $19,500.  The current value is $33,739 for a gain of $14,239 or 73%, which works out to approximately 8% / year.  Go to the link on the right or here for a detailed spreadsheet of the holdings.

The stocks in the portfolio are doing well.  We took a big hit on Twitter earlier in the year when the e-commerce and web companies were hit hard and sold but it’s bounced up a bit since then.  Generally we are doing well overall and don’t have any stocks with stop loss orders (for now).

There are 17 stocks in the portfolio and $2205 in cash.  Assuming that $500 is contributed by the beneficiary and the trustee contributes $500 and matches $500, there will be $3705 available for investing.  We will select two stocks in the cost range of about $1800 and try to keep the total number of stocks in the portfolio under 20 or so (would be 19).

Stock Selections for 2014

It is time to select 2014 stocks.  Generally each fund selects 2 new stocks, although there are some significant cash balances available on the other funds (due to stock sales) and they may need to pick more than 2.  Each year we offer a mix of US and non-US stocks for selection.

US Stocks

Linked In (LKND) – $201 / share, $24B market cap, 52 week range $136-$258, no dividend, no debt.  Linked In is a growing and well run web company for business professionals to make contacts and find new opportunities.  They recently had excellent earnings for Q2 2014

Exxon Mobil (XOM) – $99 / share, $424B market cap, 52 week range $84-$104, 2.7% dividend, $11B long term debt.  Exxon Mobil is viewed as the best run energy company in the world and has a disciplined use of capital with a long term horizon.

General Motors (GM) – $33 / share, $53B market cap, 52 week range $31-$41, 3.3% dividend, $40B debt.  While GM has been in the news recently regarding recall efforts, they have a long term growth story with their presence in China and the growth of vehicles in that market, which passed the US in terms of cars purchased and has larger growth opportunities

eBay (eBay)  – $52 / share, $65B market cap, 52 week range $48-$59, no dividend, $5B debt.  eBay is a well run e-commerce company that also owns the payments company PayPal.  They have moved successfully to mobile and offer many products with “buy it now” and not just auction sales.

Foreign Stocks

Anheuser Busch Inbev (BUD) – $107 / share, $171B market cap, 52 week range $92-$116, 1.9% dividend, $49B debt. The iconic US company that makes Budweiser was bought by hard-charging Brazilians and headquartered in Belgium.  This is the dominant worldwide beer company.

Weibo Corp (WB) – $19 / share, $6B market cap, 52 week range $16-$24, no dividend, little debt.  Weibo runs a Chinese microblogging platform.  It is kind of a Chinese twitter.  They release earnings on August 5 we will also see the market reaction to those results.

Coca-Cola Femsa (KOF) – $108 / share, $22B market cap, 52 week range $92-$149, 1% dividend, $4B debt.  This Mexican company runs the successful Coca-Cola franchise along with beverages in many other latin and Spanish speaking countries.

China Life Insurance (LFC)  – $44 / share, $83B market cap, 52 week range $35-$49, 1.6% dividend, $14B debt.  China Life Insurance is a large insurer in mainland China, where the population is aging and opportunities for insurance will grow as a result.

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