Portfolio One is our longest lived portfolio, at over 16 1/2 years. The Portfolio began right after 9/11.
The beneficiary has contributed $2000 (net of withdrawals) and the trustee has contributed $16,000 for a total of $18,000. The current value of the portfolio is $43,441 for a gain of $25,441 or 141%, which is 7.2% / year adjusted for the time value of cash flows.
Portfolio One is the most advanced in that 1) I’ve transferred the account over to the beneficiary 2) I have switched to an “agent” mode where I can still make transactions like buys or sells (and this still benefits from my free commissions) 3) the beneficiary is starting to “draw down” some of the assets from the portfolio in order to fund purchases (capital assets and the like).
Go here for a summary of Portfolio One or click on the link on the right.
There were three sales last year (BOX, KO, TATA) and one purchase (NVDA). Generally the portfolio has done well, although we (obviously) sold far too earlier on AMZN and MSFT. The three sales had a net long term gain of $948, which will be subject to capital gain taxes.
It is important to recognize the positive impact of dividends on a portfolio like this – to date it has earned $6894 in dividends and $805 in 2017. When you just look at stock prices against original purchase cost you miss the significant impact (over time) of dividends. One of the major purposes of going through all this work on the portfolio is to align dividends with the stocks that drove the dividends, to see total returns.
The portfolio is generally doing OK; like everyone else we had a scare when the stocks went down in early 2018 but they’ve (mostly) come back since then. In an earlier post we discussed moving some of the funds into cash / gold to reduce overall portfolio risk. This is still being considered.