Portfolio Four is 10 years old. The beneficiary contributed $5500 and the trustee $11,000 for a total of $16,500. The current value is $22,566 for a gain of $6,016 or 37%, which is 5.1% / year when adjusted for the timing of cash flows. You can see a summary here or at the link on the right.
The portfolio has 19 stocks. Big gains have come from Appian (APPN), Elbit Systems (ESLT), Procter & Gamble (PG), Oracle (ORCL) and Wal-Mart (WMT). It is important to factor in the impact of dividends on stocks held a long time; for example Royal Dutch Shell (RDS.B) and Westpac (WBK) look like “losers” from a stock price perspective – but when dividends are (properly) included, they move into the winning column.
Portfolio Four is almost 10 years old. The beneficiary contributed $5000 and the trustee $10,000 for a total of $15,000. The current value is $18,567 for a gain of $3,567 or 24%, which is about 3.8% / year over the life of the account. Go here or to the link on the right for details. We may look at selling Electronic Arts (EA), Nvidia (NVDA) and Gilead (GILD) this summer.
Portfolio Four is 9 years old. The beneficiary contributed $5000 and the trustee $10,000 for a total of $15,000. The current value is $16,984 for a gain of $1,984 or 13%, which is about 2.3% / year over the life of the account. Go here or to the link on the right for details.
Given the current market, we have some stocks that we are monitoring:
- Electronic Arts (EA) – this stock is at about 53% of its 52 week high, as the whole games market has been hit hard lately even though the fundamentals (revenue) aren’t that much different, possibly due to Fortnight and the potential impact of streaming. Will watch, may sell
- ABB (ABB) – European industrial conglomerate which has fallen about 20% since we’ve bought it
- Nvidia (NVDA) – another former high flyer, this chip maker was buoyed by crypto mining and is down about 50% off its 52 week high, although it still has strong cash flow. Will watch, may sell
- Box (BOX) – this is a well-run tech company that is a possible take over target. They have gone down 25%+ with the overall tech market. Will watch
Portfolio four is nine years old. The beneficiary contributed $4500 and the trustee $9000 for a total of $13,500. Current value is $18,063 for a gain of $4,563 which is 34%, or 5.8% / year when adjusted for the timing of cash flows. Go here for details or click the link on the right.
There are 3 stocks that we have on watch right now:
- Tesla (TSLA) – the volatile car maker stock led by Elon Musk is in the news almost every day it seems
- ABB (ABB) – the large European conglomerate we bought about a year ago
- Elbit Systems (ESLT) – Israeli defense contractor which recently acquired Uzi from their government
We are likely to sell TSLA and the other two we will likely continue watching.
Portfolio Four is 8 1/2 years old. The beneficiary contributed $4500 and the trustee $9000, for a total of $13,500. The current value is $18,309 for a gain of 36%, which is 6% / year adjusted for the timing of cash flows. Go here for details or use the link on the right.
For tax purposes, during 2017 we sold 2 stocks, Devon (DVN) and Spirit Airlines (SAVE) for $465 in long term capital losses, and earned about $297 in dividends.
The portfolio is doing pretty well and has bounced back from recent market losses.
Portfolio 4 is 8 years old. The trustee contributed $8000 and the beneficiary $4000 for a total of $12,000. The current value is $14,957 for a gain of $2,957 or 25% which is about 5% / year adjusted for the timing of cash flows. Go here or to the link on the right for more details.
We need to make some decisions on stocks prior to investing:
- Devon (DVN) – energy company hit hard by the decline in oil and gas prices. Likely sell
- Spirit Airlines (SAVE) – discount airlines down recently due to increased competition from major airlines. May sell
- Nucor (NUE) – metals company under continuous pressure from cheaper overseas imports. May sell
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.