Portfolio Update April 2020

The markets have moved up and down since the lows hit in March, 2020. The government has taken a number of moves to shore up the market, including reducing interest rates, back-stopping some industries, and even buying some corporate debt instruments and ETF’s. After some incredible moves up and down, the markets are back to about where they were at the end of Q3 2019.

Portfolio April 12, 2020
Portfolio April 12, 2020

Our stocks mostly went down with the overall market, although some performed better. Specific sectors, like energy and airlines, were particularly hard hit. The Coronavirus is making us reconsider our core assumptions in light of how the market has been performing recently. We may sell out of some sectors to avoid potential further declines.

Portfolio One:

  • Exxon Mobil (XOM) – while well run and with a good dividend, the energy sector is facing significant challenges with reduced oil prices and this stock has been stuck and declining for a decade.  Consider selling.
  • Toronto Dominion (TD) – this is a well run Canadian Bank with trading exposure.  However, banks face unknown challenges with debt defaults and trading commissions have recently evaporated.  Consider selling

Portfolio Four:

  • Oracle (ORCL) – Oracle is famous for being ruthlessly well run and has held up well in the market turmoil.  However, they piled on debt to keep up earnings per share through stock buybacks and are generally passed by in most areas of Technology.  Consider selling
  • Nucor (NUE) – A good company with a good dividend that hasn’t risen in many years even in a favorable regulatory environment.  Consider selling
  • Royal Dutch Sell (RDS.B) – large European oil & gas producer hit hard by oil price downturn.  Consider selling
  • Westpac Banking Group (WBK) – large Australian bank hit by recent market turmoil and other issues.  Has been stagnant or falling for many years.  Consider selling

Portfolio Five:

  • Baozun (BZUN) – Chinese e-commerce enabling company has been down for some time in terms of stock price.  Poised to be successful in future growth.  May want to consider selling
  • Canadian Imperial Bank of Commerce (CM) – Canadian bank with high dividend that has been down more than the market.  Consider selling
  • General Motors (GM) – US car maker hit by reduced demand for cars and fight with the president.  Consider selling
  • Siemens (SIEGY) – German industrial company that is spinning off components and hit with market events.  Consider selling.  May look at buying pieces of the company later post restructuring

Portfolio Six:

  • Baozun (BZUN) – Chinese e-commerce enabling company has been down for some time in terms of stock price.  Poised to be successful in future growth.  May want to consider selling
  • Royal Dutch Sell (RDS.B) – large European oil & gas producer hit hard by oil price downturn.  Consider selling
  • Exxon Mobil (XOM) – while well run and with a good dividend, the energy sector is facing significant challenges with reduced oil prices and this stock has been stuck and declining for a decade.  Consider selling

Portfolio Seven:

  • Baozun (BZUN) – Chinese e-commerce enabling company has been down for some time in terms of stock price.  Poised to be successful in future growth.  May want to consider selling
  • General Motors (GM) – US car maker hit by reduced demand for cars and fight with the president.  Consider selling

Portfolio Eight:

  • Baozun (BZUN) – Chinese e-commerce enabling company has been down for some time in terms of stock price.  Poised to be successful in future growth.  May want to consider selling
  • General Motors (GM) – US car maker hit by reduced demand for cars and fight with the president.  Consider selling

 

Portfolio Eight Updated February 2020

Portfolio Eight is 4 1/2 years old.  The beneficiary contributed $2500 and the trustee $5000 for a total of $7500.  The current value is $10,347 for a gain of $2906 which is 38%, or 11.1% / year when adjusted for the timing of cash flows.  See the detail here or at the link on the page.

In 2019 there were no sales for tax purposes and we had $91 in dividends.

Right now the portfolio is doing well.  There are 2 stocks to keep an eye on:

  • Baozun (BZUN) – Chinese e-commerce company seems well run but has been hit by Chinese events
  • General Motors (GM) – world wide iconic car maker has a good dividend but has been hit by recent events in China.  They have also been making pre-emptive efforts to cut costs

 

Portfolio Seven Updated February 2020

Portfolio seven is 4 1/2 years old.  The beneficiary contributed $2500 and the trustee $5000 for a total of $7500.  The current value is $10,955 for a gain of $3455 or 46% which is 12.9% / year when adjusted for the timing of cash flows.  You can see the detail here or at the link on the page.

During 2019 we did not have any sales for tax purposes, but we did have about $107 in dividends.

Right now the portfolio is doing well.  There are 2 stocks to keep an eye on:

  • Baozun (BZUN) – Chinese e-commerce company seems well run but has been hit by Chinese events
  • General Motors (GM) – world wide iconic car maker has a good dividend but has been hit by recent events in China.  They have also been making pre-emptive efforts to cut costs

 

Portfolio Six Updated February 2020

Portfolio 6 is 7 1/2 years old.  The beneficiary contributed $4000 and the trustee $8000 for a total of $12,000.  The current value is $14,858 for a gain of $2,858 or 24%, which is 4.7% / year when adjusted for timing of cash flows.  See details here or at the link.

During 2019 we had 2 sales for a long term capital loss of ($307) and dividends of $221 for tax purposes (see 1099 for exact values these are estimates).

The stocks on watch for this portfolio are

  • Exxon Mobil (XOM) – while this oil and gas company is well managed and has a high dividend, the stock price has not improved in many years and the large oil companies were hit recently with the reduction in commodity prices.  Will be painful to give up on this stock but am considering it
  • Royal Dutch Shell (RDS.B) – like Exxon Mobil, this integrated oil and gas company pays a very high dividend but has not improved in many years.  It also was hit by recent commodity price drops
  • Baozun (BZUN) – Chinese e commerce company is well run but has been hit by recent geopolitical events

Portfolio Five Updated February 2020

Portfolio 5 is 10 1/2 years old.  The beneficiary contributed $5500 and the trustee $11,000 for a total of $16,500.  The current value is $22,877 for a gain of $6377 or 39% which is 5.3% / year adjusted for the timing of cash flows.  Go here for details or to the links on the page.

In 2019 we had 3 sales for a long term loss of -$430 and $367 in dividends.

Right now we have a few stocks we are looking at:

  • Baozun (BZUN) – Chinese e-commerce enabling firm keeps getting hit by headwinds.  Well run but may sell
  • General Motors (GM) – hit by labor unrest and now Chinese issues.  Holding up OK.

Portfolio Eight Updated December 2019

Portfolio 8 is a bit over 4 years old.  The beneficiary contributed $2500 and the trustee $5000 for a total of $7500.  The current value is $9,557 for a gain of $2,057 or 27%, or 8.2% / year when adjusted or the timing of cash flows.  You can see the summary here or at the link on the right.

The portfolio holds 9 stocks.  The biggest winner is Mastercard (MA) and the others have been doing OK.  General Motors (GM) and Baozun (BZUN) are down a bit overall.

Portfolio Eight Updated July 2019

Portfolio Eight is almost 4 years old.  The beneficiary contributed $2000 and the trustee $4000 for a total of $6000.  Current value is $7278 for a gain of $1278 or 21%, which is about 7.8% / year across the life of the fund.  See here for details or go to the link on the right.  We will look into selling General Motors (GM), Baozun (BZUN) and Nvidia (NVDA) this summer before buying additional stocks.