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 1 Updated April 2017

Portfolio One is 15 1/2 years old.  The beneficiary contributed $7500 and the trustee $15,500 for a total of $23,000.  The current value is $41,421 for a gain of $18,421 or 80%, which is about 6.2% / year when adjusted for the timing of cash flows.   You can see the data here or follow the link on the right.

The portfolio is generally doing well.  This portfolio is the first to be moved from a trust fund to the beneficiaries control (although technically they were under control from 18 onward).  The trustee now has agency to track the stocks and dividends and make transactions.  Now there will be charges for buys and sells (I think it is about $20 / trade) but this shouldn’t be too bad since we don’t do a lot of transactions annually.

What a Stock Market Rally Looks Like


The stock market has been on a tear since the election.  Initially, the stock rally was concentrated in a few industries where investors believed the new administration would assist their financial position (airlines, banks, etc…).  Recently, the rally has taken on a life of its own and is just going UP.  There are 21 stocks contained in Portfolio One, and today 20 of the 21 stocks went up (one foreign stock ADR went down slightly).  This sort of correlation amongst all the stocks is a sign of euphoria in the market.  I don’t have any particular insight into where stocks are moving next but this is an interesting sign for the market right now.

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 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.