Portfolio Three Updated January 2017 – Tax Time

Portfolio three is our 3rd longest lived portfolio, at a bit over 9 years.  The beneficiary contributed $5000 and the trustee $10,000 for a total of $15,000.  The current value of the portfolio is $16,551 for a gain of $1551 or 10%, which works out to about 2% / year when adjusted for the timing of cash flows.  You can see the detailed spreadsheet at the link on the right or download it here.

During 2016 we had about $280 in dividends (for a yield of about 1.7%) and had long-term capital losses on our sale of WYNN and Linked In (LNKD) which was bought by Microsoft.  Most of our sales have held up pretty well except for Weibo (WB), typically called “China’s Twitter” which went up significantly from recent lows.

Portfolio One Updated January 2017 – Tax Time

Portfolio One is our longest lived portfolio, at over 15 years.  The beneficiary contributed $7500 and the trustee $17,000 for a total of $24,500.  The current value is $39,250 for a gain of $14,750 or 60% since inception with an annual return of just over 5%.  See the detailed spreadsheet at the links on the right or download it here.

In 2016 we had no sales for tax purposes and about $790 in dividends (the exact amount on the tax return will be different because this is net of foreign tax withholding).  Generally the stocks in this portfolio are doing well with just a couple on watch.

Looking back on all the 20+ sales over the years most have been good in hindsight, with the obvious exceptions of Amazon (AMZN), Microsoft (MSFT) and Southwest Airlines (LUV).  Hindsight isn’t 20/20 and likely as this portfolio transitions over to the beneficiary (I still will advise) at some point we will stop looking so far back into the past and just look forward.

 

 

Portfolio Post Election

After the elections, stocks have generally gone up. Some sectors have done well, and others have fallen. The US dollar is stronger, which means that our overseas stocks have gone down on a relative basis.

We are judicious on selling off stocks here. However, since the election is past it is likely time to make a few moves in some areas.

Portfolio One:

  • Novartis (NVS)– the Swiss drug maker is down about 20% from where we bought it (but has almost a 4% dividend), and drug makers seem to be under pressure with the new administration calling for price reductions. On watch will look at the next earnings release at the end of January
  • Statoil (STO) – the Norwegian oil company is down 20% off our purchase price but has come back significantly with possible increases in oil prices.  They also didn’t cut their dividend which remains a high 6% yield which also is positive for investors.  Will watch and see if it rises further
  • Infosys (INFY) – Infosys has fallen about 25% off its peak.  The company benefits from the declining Indian currency since most of its revenues are earned overseas.  However, the offshore firms have also been hit by the new administration and potential curbs on outsourcing, which they are trying to limit by having more US based staff and less overseas contractors.  The company is on watch
  • Tesla Motors (TSLA) – this is a very speculative stock (little earnings, high valuation) and has high volatility.  We will keep it on watch
  • Anheuser Busch Inbev – the stock has dropped by over 30% recently as they attempt to purchase Miller Coors.  They also have been hit with economic volatility in Brazil.   They are a well run group but these are strong headwinds.  We will put the stock on watch

Portfolio Two:

Portfolio Two moved over to ETF’s and CD’s.  Their ETF’s have been doing well with the exception of the NASDAQ Biotech ETF (IBB) in which we have a relatively small position that is new.  We will continue to watch this sector ETF.

Portfolio Three:

  • Wynn (WYNN) – the casino stock is a major operator in China.  The stock is down over 30% and no longer delivering “special” dividends beyond the regular quarterly dividend.  We will sell the stock now
  • Infosys (INFY) – Infosys has fallen about 25% off its peak.  The company benefits from the declining Indian currency since most of its revenues are earned overseas.  However, the offshore firms have also been hit by the new administration and potential curbs on outsourcing, which they are trying to limit by having more US based staff and less overseas contractors.  The company is on watch

Portfolio Four:

  • Coca-Cola FEMSA (KOF) – the Central American distributor of Coke is 40% off from our purchase price,  been hit by various issues and negative currency fluctuations and now finally the current administration.  We will sell the stock now
  • Tesla Motors (TSLA) – this is a very speculative stock (little earnings, high valuation) and has high volatility.  We will keep it on watch
  • Novartis (NVS)– the Swiss drug maker is down about 20% from where we bought it (but has almost a 4% dividend), and drug makers seem to be under pressure with the new administration calling for price reductions. On watch will look at the next earnings release at the end of January
  • Statoil (STO) – the Norwegian oil company is down 20% off our purchase price but has come back significantly with possible increases in oil prices.  They also didn’t cut their dividend which remains a high 6% yield which also is positive for investors.  Will watch and see if it rises further
  • Royal Dutch Shell (RDS.B) – the European oil company is down almost 20% on price but has been rising and hasn’t cut the over 6% dividend.  Will watch and see if it rises further
  • Devon (DVN) – unlike Statoil and Shell, Devon did cut their dividend and is down about 20% on price.   However, the stock is up almost 2 1/2 times off its low so we will hold it as it keeps recovering.  Will watch and see if it rises further

Portfolio Five:

  • Anheuser Busch Inbev – the stock has dropped by over 30% recently as they attempt to purchase Miller Coors.  They also have been hit with economic volatility in Brazil.   They are a well run group but these are strong headwinds.  We will put the stock on watch
  • Juniper (JNPR) – Juniper had been down significantly but now is above our purchase price.  We will watch this stock as an acquisition candidate and may sell if it stops rising.  This stock is on watch

Portfolio Six:

  • Coca-Cola FEMSA (KOF) – the Central American distributor of Coke is 40% off from our purchase price,  been hit by various issues and negative currency fluctuations and now finally the current administration.  We will sell the stock now

Portfolio Seven:

  • Unilever (UNLV) – Unilever is down about 14% off peak due to the reduction in the value of the British pound and other factors.  This is a recent purchase and a well run company we will put the stock on watch

Portfolio Eight:

  • Unilever (UNLV) – Unilever is down about 14% off peak due to the reduction in the value of the British pound and other factors.  This is a recent purchase and a well run company we will put the stock on watch

 

Portfolio Eight Updated October, 2016

Portfolio Eight has a value of $3285. The beneficiary contributed $1000 and the trustee $2000 for a total of $3000.

Portfolio 8 Updated March 2016

Portfolio Seven Updated October, 2016

Portfolio Seven has a value of $3,320. The beneficiary contributed $1000 and the trustee $2000 for a total of $3000.portfolio_7_oct_2016

Portfolio Six Updated October, 2016

Portfolio Six has a value of $7,758. The beneficiary contributed $2500 and the trustee $5000 for a total of $7500.

portfolio_6_oct_2016

The portfolio has mostly recovered from the fall in oil prices.

Portfolio Five Updated October, 2016

Portfolio Five has a value of $13,656. The beneficiary contributed $4000 and the trustee $8000 for a total of $12,000.

portfolio_5_oct_2016