Portfolio One is our longest lived portfolio at twelve and a half years. The beneficiary invested $6000 and the trustee $13,500 for a total of $19,500. Current value is $33,549 for a gain of $14,049, which is 72% or approximately 8% / year. You can see the detail on the right or click here.
Recently there have been five sales in the portfolio. During market volatility we put in some stop loss orders which resulted in sales. We bought three stocks recently, because we are trying to reduce the total number of stocks in the portfolio (currently 18) and raise the average value of each position (currently around $1800). A goal would be to get the portfolio nearer $2000 / position on average.
The portfolio seems to be doing well. About 40% of the positions are overseas stocks and 60% domestic. This is a reasonable balance.
The portfolio averages about 2% / year in dividends, which is a good balance since many of the technology stocks don’t pay dividends while the foreign stocks usually pay higher dividends, although some of these dividends are offset by withholding.
It is also tax season. The interest we earn on our cash not invested is now so low that we don’t even receive a 1099 INT (it is measured in cents). We did not have any gains or losses in 2013 (our recent 5 sales all occurred in 2014, and they netted to a small loss). We do pay taxes on dividends which receive qualified status. This beneficiary does file taxes because he has other income and the income from this portfolio is then added to the total return.