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.

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Portfolio Six Update March 2016 – Tax Time

Portfolio Six is 3 1/2 years old.  The beneficiary contributed $2000 and the trustee $4000 for a total of $6000.  Current value is $5410 for a loss of ($590) or (-9.8%), or (-4.1%) a year when adjusted for the timing of cash flows.  Go here or to the link on the right for a spreadsheet with details.

This year we sold Seaspan (SSW).  We purchased Union Pacific (UNP), Tata Motors (TTM) and ConocoPhillips (COP).  ConocoPhillips cut their dividend by 75% after this purchase which impacted their share price, although they have been doing better recently.  ConocoPhillips is on watch.  Coca Cola Femsa (KOF), the Central American soda distributor, is also on watch, due to the fall in the Mexican peso vs. the US dollar.  We continue to do well with Procter and Gamble (PG).

 

Portfolio Five 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 $10,435 for a loss of ($65) or (0.6%) or basically flat performance when adjusted for the timing of cash flows.  The spreadsheet detail can be found here or in the links on the right.

We sold Seaspan (SSW), Yahoo (YHOO) and Sasol (SSL) this year while buying Union Pacific (UNP), Tata Motors ADR (TTM) and ConocoPhillips (COP).  Right now ConocoPhillips (COP) is on watch after cutting their dividend 75%, and LinkedIn was hit hard during their recent earnings guidance, also putting the stock on watch.

We had some gains and losses this year the brokerage account makes it easy to calculate taxes since it includes the original cost basis as well as the sales information.

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 Six Updated October 2015

Portfolio Six is four years old.  The beneficiary contributed $2000 and the trustee $4000 for a total of $6000.  The current value is $5572 for a loss of ($427) or (7.1%), or negative (2.9%) / year.  See details here or use the links on the right.

Like many of the portfolios, the commodity price collapse has impacted these stocks.  Exxon Mobil (XOM) and Royal Dutch Shell (RDS.B) are both well run companies working to cope with lower oil and natural gas prices and to protect their dividends and long term interests.  Seaspan (SSW) is a Chinese shipper with a very high dividend of 9% that it is currently maintaining.  Finally, Coca Cola Femsa (KOF) is the Mexican Coke bottler which has been negatively impacted by the fall of the Mexican Peso vs. the US dollar.

Portfolio Five Updated October 2015

Portfolio five is six years old.  The beneficiary contributed $3500 and the trustee has contributed $7000 for a total of $10,500.  The current value is $11,297 for a gain of $797 or 7.6%, which is 1.8% / year.  The details can be found here or you can use the links on the right.

Portfolio five has a couple of stocks on watch.  Yahoo (YHOO) has most of its value tied to the Chinese company Alibaba (BABA).  Seaspan (SSW) has a very high dividend at 9% and is on watch to see if that is sustainable.

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.