Setting Up a Trust Fund for Kids, Along with General Investment Information
Based on the situation in each account and the amount of cash available after contributions and sales each account has a number of different purchases to make:
Portfolio 1 – no purchases
Portfolio 2 – can invest $2500 in ETF’s (one of the current 4 in use) or the Gold ETF added. Or leave it in cash
Portfolio 3 – 2 purchases
Portfolio 4M – 3 purchases
Portfolio 5D – 3 purchases
Portfolio 6 – 3 purchases
Portfolio 7G – 2 purchases
Portfolio 8K – 2 purchases
Below are our stock selections for 2017:
US Stocks
2. Nvidia Corporation (NVDA) – $179, 52 week range $63-$191, $107B market cap, almost no dividend, $4B debt. Nvidia makes chips for games and graphics cards and these chips are also being used for AI and machine learning use cases.
3. General Motors (GM) – $42, 52 week range $30-$42, $61B market cap, 3.8% yield, $55B debt. GM is an iconic, global auto manufacturer with strong worldwide presence including China and has invested heavily in electric car technology. Non US sales total 58% of volume (but a smaller percentage of profits).
4. Snapchat (SNAP) – $15, 52 week range $11-$29, $18B market cap, no dividend, no debt. Snapchat went public and recently has lost almost half its value. The company has over $2B in cash but is running a large loss due to operational expenses and acquisitions. However, it is still strong in market and mind share and could also be an acquisition candidate for the right price
International Stocks
5. Baozun (BZUN) – $36, 52 week range $11-$41, $2B market cap, no dividend, little debt. Baozun is a Chinese e-commerce provider for many major companies.
6. ABB (ABB) – $25, 52 week range $20-$25, $54B market cap, 3% yield, $7B debt. ABB is a Swiss company and European conglomerate with strong interests in power and electricity generation.
Other
7. Gold ETF (IAU) – $12, 52 week range $11-$13, no dividend. This ETF tracks the price of gold. In case of a market correction (prices go down), gold often holds its value on a comparative basis. On the other hand, gold pays no dividends and does not generate profits
We looked at bitcoin but there currently isn’t a direct bitcoin ETF and if someone wanted to trade bitcoin or ether they would be better off trading it directly. These sorts of crypto currencies can cause taxation and other related issues and are too complex for this portfolio at the current time.
We are about to re-invest for the 2017 stock season. Would like to clear out some of the stocks we no longer want to hold.
Portfolios One, Two and Three – no sales (we made some recent sales in Portfolio One).
Portfolio Four (M):
Portfolio Five (D):
Portfolio Six:
Portfolio Seven (G):
Portfolio Eight (K):
We are looking at the portfolios prior to the summer 2017 stock investing. We are mainly evaluating stocks that have fallen relative to their 2017 52 week high prices. We are also considering some whose narrative have changed (usually the same stocks). This is easier now that I have a central consolidated view of stocks and some standard analytics through Google Sheets that use automatic formatting as well.
Portfolio One:
Portfolio Two:
Portfolio Three:
Portfolio Four (M):
Portfolio Five (D):
Portfolio Six
Portfolio Seven G:
Portfolio Eight K:
Portfolio five is 8 years old. The trustee contributed $8000 and the beneficiary $4000 for a total of $12,000. The current value is $14,184 for a gain of $2,184 or 18%, which works out to 4% / year. See detail here or go to a link on the right.
We are evaluating stocks to sell prior to our summer purchases.
Portfolio 4 is 8 years old. The trustee contributed $8000 and the beneficiary $4000 for a total of $12,000. The current value is $14,957 for a gain of $2,957 or 25% which is about 5% / year adjusted for the timing of cash flows. Go here or to the link on the right for more details.
We need to make some decisions on stocks prior to investing:
Portfolio Eight is 2 years old. The trustee contributed $2000 and the beneficiary $1000 for a total of $3000. The current value is $3411 for a gain of $411 or 13%, which is 8% / year. See the details here or use the link on the right.
Tata Motors (TTM), the Indian truck maker who also owns Jaguar / Land Rover, is on watch. We are considering selling this stock which has fallen over the last year.
