Portfolio Two is our second longest portfolio. It has been up and running for 7 1/2 years.
Contributions from the beneficiary total $4000 and from the trustee it is $8000 for a total of $12,000.
The portfolio is now worth $14,142, for a gain of $4,142 or 18%, or about 3 1/2% / year over the life of the portfolio.
All of the portfolios have been helped by the recent run-up in the stock market. Right now a lot of the stocks are marked “green”, meaning that they are up over $200 (unrealized gains plus dividends), and none of the stocks currently held are “red” (meaning they are down over $200 in unrealized losses less dividends).
Wynn Resorts (WYNN), which owns a huge money making casino in Macau off China’s coast, has been in the news a lot because the CEO is feuding with his Japanese partner. It is difficult to tell how this sort of thing will turn off but we are holding on for now because gambling in China is a great place to be. Urban Outfitters (URBN) took a dive when they missed earnings and subsequently the CEO resigned but we held on because they had no debt and seemed to be a candidate for a turnaround… we are watching them for now and if nothing happens we will sell prior to the next buying round at the end of the summer. Our “net” position in Toyota (we bought them twice) is about break-even when dividends are taken into account; it was far down due to the brake scandal and other items but have come back lately at least to even.
For 2011 taxes, this portfolio doesn’t have to file based on “unearned income” (gains plus dividends plus interest income, although now interest income is so damn small it doesn’t matter anymore). There was a gain on Ralcorp that we sold of $295 and dividends of $241 (see “box”) that comes on the 1099 form from the brokerage but unearned gains have to be $950 in order to file in 2011 per the IRS publication 929 which summarizes tax rules for children.