Portfolio Two is our second longest lived portfolio. We started this portfolio almost ten years ago. The beneficiary contributed $5000 and the trustee contributed $10,000 for a total of $15,000. The portfolio is worth $18,991 for a gain of $3991 which is 26%, or about 4% over the life of the fund (adjusted for the timing of cash flows). You can see the detail here or on the links on the right side of this page.
Currently the portfolio is doing well. We have only one stock underwater in terms of “total return” (price appreciation plus dividends) and that is WYNN, and it has come up substantially from earlier lows. Two technology stocks, SPLUNK and FACEBOOK, also have performed well recently (we bought FB near the nadir post IPO and it is getting near its IPO price of $38).
Siemens (SI) is a German engineering company that has missed earnings many times recently and they are looking to replace the CEO. That effort usually provides a good short-term catalyst for the stock and we will watch to see how it performs going forward. NIDEC (NJ) is a Japanese manufacturer that has gone down over recent years and cut its dividend; Japan has tried to rejuvenate their economy by reducing the value of their currency; in our US dollar terms gains in the stock price are often wiped out by depreciation after it is translated back into US dollars (done automatically by the ADR). Both of these stocks are now on watch.
While looking at stocks we’ve sold over the years, two have come back from substantial lows. Home Depot (HD) was sold back during the dark days falling out of 2009-10 but the stock has roughly doubled since then. USANA (the sales company) has also doubled since we sold them. A typical investment advisor wouldn’t bring up past sales that have gone against us but this is a portfolio not for profit just for our benefits and learning so we need to watch what happened. However, we have net done pretty well from the stocks we’ve sold, all things considered.