Portfolio One is our longest lived portfolio. It is 19 years old. The beneficiary contributed $5000 and the trustee $19,000 for a total of $24,000. The current value is $72,519 for a gain of $48,519 or 202%, which is 8.6% / year adjusted for the timing of cash flows. You can see details here or at the link on the right.
Portfolio one has 20 stocks. The major gains have come from Taiwan Semiconductor Manufacturing (TSM), PayPal (PYPL), Nvidia (NVDA), and Procter & Gamble (PG). Other winners include Alibaba (BABA), Accenture (ACN), Infosys (INFY), Toyota (TM), and American Electric Power (AEP). Stocks hitting recent bumps include EA (earnings), CME (ZIRP), SAP (earnings), and BABA (delay of ANT IPO).
This year we will have two lists of stock selections. The first list will be a small list of new selections for 2019, split between US and foreign companies.
The second list will have stocks that are from existing portfolios to choose from, splits between US and foreign companies, if the individual portfolio doesn’t already have these stocks (we want diversification until you get to 15 or so stocks).
New Selections for 2019 – US:
- OTKA (OKTA) – OKTA is a software provider of access and authentication solutions for businesses. OKTA pays no dividends. It has been on a great run and is used by many major corporations. It recently went down about 25% from all time highs which is a better price point to purchase. A new competitor, PING, recently went public and saw its valuation go up, as well (OKTA’s market cap is about 10x bigger)
- Abbvie (ABBV) – Abbvie is a pharmaceutical company with a high dividend of almost 6% whose stock price went down almost by half after a recent merger, although it recently recovered some of the loss. This also may be a good price point to purchase the stock.
- Starbucks (SBUX) – Starbucks is an iconic US brand. The stock pays a modest dividend of 1.6%. They are focused on profitable growth.
New Selections for 2019 – Non US
- BHP (BHP) – BHP is an Australian natural resources (mining / commodities) giant with a high 5.2% dividend. They are diversified and well run (some competitors like VALE have had significant challenges recently)
- Accenture (ACN) – Accenture is a world wide consulting and outsourcing company headquartered in the Bahamas with a modest 1.5% dividend. About half their revenues are from North America. They are well run and a leader in the consulting space
Stocks in US Portfolio to Consider (if not owned already):
- American Electric Power (AEP) – Utility with 2.8% dividend
- CME Group (CME) – futures exchange with combined dividends and special dividends more than 3% annually
- Facebook (FB) – software company with excellent stock performance even after all the publicity. Paying a few billion for Instagram may be one of the best purchases ever
- Gold ETF (IAU) – gold does not pay a dividend but the price of gold has recently started rising with risk and high levels of debt behind major countries
- Coca Cola (KO) – Coke pays a 2.9% dividend and is well run and focused on profits
- Mastercard (MA) – Mastercard benefits from the rise in mobile payments and move away from checks and cash, and pays a very small 0.5% dividend
- Procter & Gamble (PG) – Procter and Gamble owns and manages many brands and has a solid 2.5% dividend
- PayPal (PYPL) – PayPal has done well since its split from EBAY (pays no dividend)
Non US Stocks in Portfolio to Consider (if not owned already):
- Alibaba (BABA) – Chinese ecommerce giant (no dividend)
- Taiwan Semiconductor (TSM) – Taiwanese chip builder with high 3.6% dividend
- Unilever (UL) – European company that owns and manages brands with a good 3% dividend
Stock Selections per Portfolio:
- Portfolio One – to discuss (significant amounts in cash)
- Portfolio Two – ETF’s and cash, to discuss (40% cash now)
- Portfolio Three – will move away from stocks and into ETF’s. Will discuss between VTI (US), VEU (Non US), HEFA (Non US hedged), cash, and IAU (Gold)
- Portfolio Four M – 3 stocks
- Portfolio Five D – 4 stocks
- Portfolio Six – 3 stocks
- Portfolio Seven G – 2 stocks
- Portfolio Eight K – 2 stocks