Portfolio One is our longest-lived portfolio, with 10 years of history. It is hard to believe but we started 10 years ago, with a few shares of Southwest Airlines (LUV) and Dell Stock (DELL), both of which have been sold off years ago. LUV is a story of the stock market in a microcosm; we sold at $14 in 2003, roughly breaking even, and the stock sells for $8 today. And I consider Southwest to be a well run company, albeit one in a brutal industry.
Portfolio one was up above $21,000 but then got hit like everyone else and is now at $19,410. The beneficiary has contributed $4500 and we contributed $10,500, for a total contribution of $15,000 and a positive return of about 5% / year annualized over the last 10 years. Not too bad considering the difficult time frame we were navigating.
We recently sold Ralcorp (RAH) for a gain when there was an offer for a takeover, so there is $2850 in cash in the portfolio right now, even before we add $1500 for this year, so we will get a chance to make a few stock purchases.
There are 14 individual stocks in the portfolio; we will probably buy 2 more so we will likely make a couple of sells as well of stocks that aren’t moving. Urban Outfitters is a clothing company with no debt and a focus on profitability; they had a small earnings miss and their stock got hit hard. We may sell it. TEVA is an Israeli generic drug company that also may be on the block, need to do some more research. Finally EBAY, which swan-dived and then came back close to the price we paid for it, recently started to swoon. One fact that is against EBAY and URBN is that they pay no dividend; TEVA pays a modest dividend.