Portfolio Two Updated August 2012

Portfolio Two is the second longest lived-portfolio, at about 8 years old. A link to the updated statement is here or you can find it in the link list on the right side of the page. The current value is $13,780. Investment by the trustee has been $8000 and the beneficiary $4000, for a total of $12,000. The gain so far is $1780 or 14.8%, about 3.1% / year since inception.

Current Portfolio

We are reviewing the stocks in Portfolio Two as part of the preparation for purchasing stocks for 2012. Wynn is a casino company in the US that has interests in Macau (which dwarfs Las Vegas) and has been involved in lawsuits with their Japanese partner, resulting in a lost of 32% when adjusted for dividends. We need to consider whether this stock can come back or if we no longer believe it will recover in the near or medium term. Urban Outfitters (URBN) faced a large loss when they missed earnings but have made up about 1/2 that loss since then. Wal-Mart and Diageo (ADR) have been good performers recently.

Stocks Sold Previously

Most of the sales were right with 20/20 hindsight (not present in real life) – we booked big gains on BHP and CHL and the stocks have yet to hit those highs.

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