Portfolio One Updated May, 2019

Portfolio One is 17 years old.  The current balance is $45,725 (of which $11,087 is cash).  The beneficiary contributed $2500 (net of withdrawals) and the trustee $17,000 for a total of $19,500.  Thus gains are $26,048 or 134% on original investment, which is about 6.7% / year when adjusted for the timing of cash flows.  Go here for details or at the link.

One item to note (it applies to all portfolios, but particularly to this one, because of its age) is the impact of dividends on long term performance.  Most “simple” stock return calculations do not include dividends (they just show the rise or decrease in price over the period selected) which significantly understates the gains from stocks which pay significant dividends (especially when the dividends grow over time).

Electronic Arts (EA) and Nvidia (NVDA) are on watch for this portfolio.

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