Portfolio One Re-updated August, 2017

Portfolio One was re-updated as of August 2017 to reflect three sales.  You can see the details here or click on the link on the right.

The portfolio recently sold three stocks (BOX, TTM and KO) and has $6349 in cash.  There is another analytics worksheet which is also linked to the underlying central spreadsheet (calculated).

Portfolio One Updated August 2017

Portfolio One is our longest lived Portfolio.  We opened it right after 9/11… meaning that it is almost 16 years old.  This portfolio has moved from the trustee to the beneficiary’s account, but we also still set it up so that the trustee has agency (can see the portfolio, buy and sell).

The beneficiary contributed $7500 and the trustee $15,500 for a total of $23,000.  The current value of the portfolio is $44,883 for a gain of $21,883 or 95%, or 7% / year adjusted for the timing of cash flows.  Go here or to the link on the right for details.

The portfolio is doing well.  We added some criteria and filtering for stocks “at risk” (BOX, Budweiser Inbev and Exxon) or “on watch” (Tata Motors / TTM).  BOX has doubled recently and is down a bit; BUD just finished a major merger but Exxon is near 5 year lows and a bit controversial due to politics.  Tata (TTM) is one we will look at closely.

Portfolio Four Updated July, 2017

Portfolio four is almost 8 years old.  The beneficiary contributed $4000 and the trustee $8000 for a total of $12,000.  The current value is $15,082 for a gain of $3,082 or a 5% rate of return, adjusted for the timing of cash flows.  See detailed PDF here or go to the link on the right side of the page.

The portfolio has some technology stocks that are doing quite well, which include Box and Oracle (you could also call Tesla a partial technology stock, as well).  The oil stocks of Devon, Shell and Statoil have generally been hit by the continued fall in oil prices.  The stock prices of Shell and Statoil have held up better than Devon because they kept their high dividends; Devon cut their dividend and has continued to fall (there are other factors at play as well).

It is important in all these portfolios not to just look at the current share price when compared with the purchase price; you need to take into account dividends, as well.  The oil stocks look bad on stock price alone but when cumulative dividends paid are tracked as well, the situation is much better.  That does not mean that we should hold stocks just for the dividends, but it is a very important factor in long run performance.  To date this portfolio has earned $1735 in dividends, which makes up more than half of the total return earned to date.

Portfolio Four Updated March 2016 – Tax Time

Portfolios four and five are 6 1/2 years old.  The beneficiary contributed $3500 and the trustee $7000 for a total of $10,500.  The current value is $10,137 for a loss of ($362) or (3.5%).  Adjusted for the timing of cash flows performance is (1%) negative a year.  See here for a spreadsheet with details or go to the link on the right.

We sold Seaspan (SSW) and Garmin (GRMN) this year.  We purchased Box (BOX), Novartis ADR (NVS), and Tesla (TSLA).

We have a number of stocks on watch.  Newly acquired Novartis (NVS) is not doing well, Coca-Cola FEMSA has been hit by exchange rates, Linked In (LKND) had a bad forward revenue guidance and their stock fell sharply on the news.  For oil companies, Royal Dutch Shell (RDS.B), Statoil (STO) and Devon Energy (DVN) have all been hit by the falling oil price.  Devon gave up on their dividend which hit the stock hard but Shell and Statoil are making cuts and borrowing to try to keep their dividend constant.

For taxes will send along the forms which helpfully now include a cost basis.

Portfolio One Updated March 2016 – Tax Time

Portfolio One is our longest lived portfolio, starting right after 9/11 and is 14 1/2 years old.  The current value is $35,158 with the beneficiary contributing $7500 and the trustee $16,500, for a total of $24,000.  Thus the gain is $11,158 or 46%, which works out to about 4.5% / year over the life of the portfolio adjusted for the timing of cash flows.   The detail can be found on the links on the right or you can go here to download the spreadsheet.

There are 20 stocks in the portfolio, which is about the maximum I’d want to track in a single portfolio.  When we add new cash into the portfolio and / or sell existing stocks we are consolidating in order to keep at a maximum of 20 stocks.

We had three sales last year, with Garmin (GRMN), Yahoo (YHOO) and TransAlta (TAC).  We had four purchases with Box (BOX), Novartis (NVS), Tesla Motors (TSLA) and Tata Motors (TTM).

We had a net long term capital loss last year, driven primarily by TransAlta.  Up to $3000 in stock losses can be deducted against ordinary income so this at least should be helpful on the beneficiary’s tax form.  The portfolio earned $935 in dividends and had $70 in foreign taxes withheld (this can be deducted as a benefit on the US tax return).  It is important to realize the percent of total return that comes from dividends; while some companies like Tesla won’t pay dividends (because they are growing rapidly), the return on dividends from established companies is an important source of income growth for the portfolio.  I will be sending the tax information to the beneficiary from the brokerage company after completing this update.

Portfolio Four After 2015 Purchases and Sales

Portfolio Four With 2015 Purchases and Sales

Attached is a screen shot from Google Finance of Portfolio Four after 2015 purchases and sales.  New stocks include Box (BOX), Novartis (NVS), and Tata Motors (TTM).  Returns are only based on stock prices and do not include dividends (the dividend payers have higher returns).

Portfolio One After 2015 Stock Purchases and Sales


Attached is a screen shot from Google Finance for Portfolio One after the purchases and sales from Fall, 2015.  New purchases are Tesla (TSLA), Tata Motors (TTM), Novartis (NVS) and Box (BOX).  The remaining cash also is updated.  The % return by stock does not include dividends (only “raw” stock price appreciation or depreciation), so dividend payers have a higher return than is listed.