Portfolio Three Updated March 2016 – Tax Time

Portfolio Three is our third longest lived portfolio, at 8 1/2 years.  The beneficiary contributed $4500 and the trustee $9000 for a total of $13,500.  The current value is $12,814 for a loss of ($685) or (5%).  Adjusted for the timing of cash flows, this is (1%) a year.  The detail can be found in the links on the right or here.

This year we sold Yahoo after all the drama and bought ConocoPhillips, Alibaba and Facebook.

There are a few stocks on watch.  LinkedIn (LNKD) dropped almost half its value when it issued forward earnings guidance; since then the stock has stabilized and is on watch.  I still believe in the company although many others apparently do not.  ConocoPhillips (COP) was hit immediately by the collapse in oil prices (even though we were buying it on a dip) – this is also on watch to see how they do in this difficult environment for commodity companies.  Wynn (WYNN) is a casino company with properties in Macau China catering to heavy Chinese gamblers; the crackdown on corruption has severely dampened earnings.

For taxes in 2015, there is a net loss for the year due primarily to a fall in value of Weibo (WB) which was pummeled in the great Chinese stock market rout and we sold the stock (it since gained back some of its value).  

Of the other stocks we’ve sold in recent years they are still below the price we sold them at.

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