Portfolio One is our longest lived portfolio, at 14 years. It started right after 9/11 and has tracked the ups and downs of the stock market since then.
The beneficiary has contributed $7000 and the trustee $15,500 for a total of $22,500. The current value of the portfolio is $34,648, a gain of $12,148 or 54% since inception, at a rate of about 5.5% / year. To date dividends have contributed over $5000 towards the value of this portfolio. You can download the portfolio here or go to the links on the right.
For the year to date, the portfolio stocks are down about 7%, compared with the S&P 500 being up 2% and the non-US index down about 6% (in US Dollar terms). The portfolio is roughly half US and half non US and the increased downturn is due to our concentration in resource stocks and some currencies that depreciated significantly vs. the US Dollar.
There are 19 stocks in the portfolio, with an average value of about $1700. The largest position is Exxon (XOM) at about $3000 and there are 2 stocks under $1000, Statoil (STO) and Trans-Alta Corporation (TAC). It isn’t a co-incidence that STO and TAC have been hit by the recent commodity price downturn (Exxon too, although not as much). The goal would be to have less than 20 or so stocks in the portfolio.
There has been a lot of volatility in the market and we’ve been holding off on selling to see how the dust settles. We may make some sales prior to reinvesting the new stock selections for 2015. Items that we are considering for sale are TransAlta (TAC), Yahoo (YHOO), Garmin (GRMN), and Wal-Mart (WMT), although we don’t want to make hasty actions based on short term moves (this mainly applies to Wal-Mart).