Portfolio Five Updated July 2013

Portfolio Five has 4 years of history. The beneficiary contributed $2000 and the trustee $4000 for a total of $6000. The current account value is $6647, for a gain of $647 or 11%, or 4% / year when adjusted for the timing of cash flows. The portfolio can be found on the links to the right or by going here.

Portfolio five has 2 stocks that we are about to give up on. Alcoa is an integrated US steel company. Alcoa faces sharp pressure from Chinese metals firms (who make up over half the industry, while the US is less than 10% of the market) who are flooding the market with metal, and the dividend isn’t large enough to let us catch up, either.

Riverbed is a company making networking equipment. They recently acquired a cloud based company and is running a loss. Riverbed doesn’t have a dividend at all. I recommend that we sell both stocks and use the proceeds as part of our 2013 new purchases.

The other stocks seem to be doing well and the portfolio is up overall. We have given these two stocks a lot of time to recover / advance and it hasn’t happened so it is time to move along.

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