Portfolio One is a little more than 17 years old. The current balance is $42,691 (of which $10,775 is cash). The beneficiary contributed $2500 (net of withdrawals) and the trustee $17,000 for a total of $19,500. Thus gains are $23,191 or 118% on original investment, which is about 6.2% / year when adjusted for the timing of cash flows. Go here for details or at the link.
Although the market has not performed well lately, most of the stocks are in decent shape and the cash holdings (over 20% of portfolio, now yielding over 2%) limit downside risk (and upside opportunities later, assuming that the market goes back up at some point).
Some stocks on watch:
- Alibaba (BABA) – at about 70% of its 52 week peak, has been hit by slow down in China and also a possible previous over-valuation in software stocks
- Electronic Arts (EA) – this stock is at about 53% of its 52 week high, as the whole games market has been hit hard lately even though the fundamentals (revenue) aren’t that much different, possibly due to Fortnight and the potential impact of streaming. Will watch, may sell
- Nvidia (NVDA) – another former high flyer, this chip maker was buoyed by crypto mining and is down about 50% off its 52 week high, although it still has strong cash flow. Will watch, may sell