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.