Portfolio Four Updated January 2017 – Tax Time

Portfolio Four is a bit over 7 years old.  The beneficiary contributed $4000 and the trustee $8000 for a total of $12,000.  The current value is $13,932 for a gain of $1932 or 16%, which is about 3.3% / year when adjusted for the timing of cash flows.  You can see the detailed spreadsheet at the link on the right or download it here.

The portfolio is generally doing well. We sold LinkedIn (LNKD) because they were bought by Microsoft and gave up on Coca Cola FEMSA (KOF) which was hurt by the decline in the Mexican Peso and recent election results.  We did not sell many of the energy companies which (mostly) held on to their high dividends and have risen recently with the uptick in oil prices.  It is important that you look at the “total return” which includes dividends because some stocks look like they have losses just based on price bought vs. today when in fact they’ve been positive due to dividends.

The portfolio had about $240 in dividends for an average yield of about 1.7%.  This is a good rate but down a bit from last year because we sold Seaspan (SSW) and Garmin (GRMN) which had high dividends.  Most of our sales are still OK in hindsight but Garmin has gone up a bit since we sold it.  We had a long term capital loss of $474 due to sales of LNKD and KOF, above.

Portfolio Four Updated October, 2016

Portfolio Four has a value of $13,034. The beneficiary contributed $4000 and the trustee $8000 for a total of $12,000.


The portfolio is still recovering from the oil price drop.

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 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 Four Updated October 2015

Portfolios 4 and 5 are both 6 years old.  Portfolio 4 has $3500 in beneficiary contributions and $7000 in trustee contributions for a total of $10,500.  The current value is $10,892 for a gain of $392 or 3.7%, which is about 0.9% / year.  You can see the details here or go to the links on the right.

The portfolio has several stocks that are on watch.  We have been holding on to Coca Cola Femsa (KOF) which is the Mexican coke bottler but the Mexican currency (Peso) has fallen heavily vs. the US dollar.  Devon Energy (DVN) has been hit hard by the commodity crash, although it is well run and pretty well hedged.  Garmin (GRMN) has also fallen recently on reduced earnings guidance.  Wal-Mart (WMT) is still up significantly from our purchase price but recent earnings guidance was poor and that stock fell too.  Royal Dutch Shell (RDS.B) and Statoil (STO) have also been impacted by falling oil prices, although Shell’s decision to stop arctic drilling is a good one from a financial perspective (the price of oil has made those wells uneconomic).  Seaspan (SSW) has a high price buoyed by a large dividend but that may not be sustainable.

Portfolio Four Updated March 2015 – And It’s Tax Time

Portfolios four and five are both five and a half years old. The beneficiary has invested $3000, the trustee $600, for a total of $9000. The fund value is $11,051 for a gain of $2051 or 22%, which works out to about 5.9% / year across the life of the portfolio. You can see the details here or go to the links on the right side of the page.

The portfolio has many dividend stocks and in 2014 earned $341, or a yield of about 3.2% / year. That is a great yield and helps performance over the long term. There were no stock sales in 2014.

Currently we have a few stocks on watch:

– Nucor (NUE) – the US steel maker downgraded its profit targets since the US is being “flooded” with foreign steel from loss making state owned companies (primarily in China). It is surprising that the stock didn’t fall further with this decline in earnings guidance
– Devon (DVN), Royal Dutch Shell (RDS.B) and Statoil (STO) have all been hit by the crashing price of oil. Also Shell and Statoil are in UK Pounds and Norwegian Kroner and both of these currencies have declined vs. the US dollar, which adds to the difficulties. For now we are holding on to these although they also are on watch
– Coca Cola Femsa is the latin America (Mexico mainly) distributor of Coke. It has been hit by the declining peso like all foreign investments. We will hold but likely put a collar on this stock in case it falls much further. Would be good to have investments in Mexico since it is a rising economy

Performance Update for January, 2015

There has been a lot of activity in the markets.  I updated the google finance accounts where I track performance for the individual funds 1-6.  We set up stop losses and about half of them were triggered overall by the rout in the oil market and also the recent fall in Chinese stocks.  I created graphs of performance since last September (when I set up in google finance) marked against VTI which is a Vanguard ETF that mimics the US market performance and VEU which is a Vanguard ETF that mimics the non-US market performance.  Generally since our funds as a rule of thumb are about half US and half non US we’d be about in the middle.  But this is a rule of thumb and varies depending on the specific stocks and their unique performance in each portfolio.

Portfolio One

Portfolio 1

Portfolio Two

Portfolio 2

Portfolio Three

Portfolio 3

Portfolio Four

Portfolio 4M

Portfolio Five

Portfolio 5D

Portfolio Six

Portfolio 6