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

Portfolio Six is our newest portfolio, at 3 1/2 years. The beneficiary contributed $1500, the trustee contributed $3000, for a total of $4500. The current value is $4530, for a gain of $30, or 0.7% or 0.3% / year across the life of the fund. You can go here for details or download the spreadsheet at the links on the right.

In 2014 we earned $122 in dividends, for a yield of over 3%. In an era of no interest on deposits, that is very good. We sold one stock in 2014, Yandex, the Russian search engine, for a slight loss at $35. The stock subsequently tumbled down to $14 with the impact of Russian sanctions and the crash of the Russian ruble.

Two of the stocks are oil stocks – Exxon Mobil and Royal Dutch Shell. When oil prices fell from over $100 / barrel to under $50 / barrel (which no one saw coming, at least not the formal analysts) these stocks fell. However, they are both well run companies and pay solid dividends and we plan to hold them for the longer term, unless new adverse events occur.

Two of the other stocks remain under pressure – Coca Cola Femsa, which sells Coca Cola and other beverages in Mexico and Central America, has fallen with the decline in the Mexican Peso vs. the US dollar. Mexico is a good long term growth market but this is on watch. Seaspan, the Chinese shipper, also fell but their very high dividend (7.3%) is still holding up.

Baidu (the Chinese internet company) and Procter and Gamble are both doing well.

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

Portfolio’s Four and Five are both 5 1/2 years old. The beneficiary contributed $3000, the trustee $6000 for a total of $9000. The value is $10,840 for a gain of $1840 or 20%, which works out to about 5.3% / year. You can see the details here or go to the link on the right.

We earned $260 in dividends in 2014, or a yield of approximately 2.6%. During 2014 we sold two stocks – Yandex (the Russian search engine) and China Petroleum. Yandex crashed much further after we sold it and China Petroleum is about the same.

In 2015 we sold Sasol (SSL) during the oil price crash – it is about where we sold the stock at ($35). We have over $1000 to invest so we will buy an additional stock in the spring.

The stocks are mostly doing well – we will keep an eye on Seaspan (SSW) the shipping company with the high dividend (over 7%).

Portfolio Six Updated August, 2014

Portfolio Six is three years old.  The beneficiary contributed $1000 and the trustee contributed $2000 for a total of $3000.  The current value of the portfolio is $3560, for a gain of $560 or 18%, which works out to about 12% / year.  The details can be found in the link on the right or go here.

The portfolio is doing well.  We sold Yandex the Russian search engine at the start of the Russian invasion of Ukraine.  There are four stocks in the portfolio and we plan to add two more this year.

Portfolio Six Updated March 2014

Portfolio Six is our newest portfolio, and is one and a half years old.  The beneficiary contributed $1000 and the trustee $2000, for a total of $3000.  The portfolio is worth $3268, for a gain of $268, or 9%, which is approximately 6% / year.  You can see the detail on the right or go here.

We recently sold Yandex when the Russians invaded Ukraine for a tiny loss.  The portfolio contains three overseas and one US stock.

There were no sales in 2013 and dividends for taxes were $70.

Portfolio Five Updated March 2014

Portfolios Four and Five are both 4 1/2 years old.  The beneficiary invested $2500 and the trustee $5000 for a total of $7500.  The value is $9030 for a gain of $1530 or 20%, which is 6% / year.  See the details on the right or click here.

Portfolio Five now has nine stocks, with some recent sales tied to stop loss orders (Yandex, China Petroleum) and two others that we gave up on in 2013 (Alcoa and Riverbed).  The existing stocks seem well positioned, with 5 overseas and 4 domestic stocks.

Tied to taxes, the portfolio earned $284 in dividends (after foreign withholding).  There was a long term loss of ($493) on sales and a long term gain of $74.

With a recent sale there is $800 cash in the portfolio and we will pick another stock out of the list.

Revised Stop Loss Orders

Generally these portfolios are roughly balanced between US stocks and overseas stocks (ADR’s bought on US Exchanges).  Recently there has been a shakeup in the overseas markets, as their currencies have begun falling vs. the US dollar (which drives a corresponding drop in the value of the stock since we receive value based on the US currency).

As such we’ve been evaluating the stocks and stop orders outstanding, and are adjusting the stop loss orders to reflect the downside risk (some already realized) on non US stocks.  Since we try to limit stop orders to 1/3 of the stocks available (or less, ideally) we are going to take the stop loss orders off some US based stocks.

Here are the new stop loss orders (and existing ones have been canceled and replace with new ones looking 60 days out rather than having them expire at odd dates).

Portfolio One

  • Urban Outfitters (URBN) – keep at 35 (don’t want to ride this back down) Executed
  • Philip Morris International (PM) – keep at 80 (had a big run, don’t want to fall below) Executed
  • Taiwan Semiconductor Manufacturing (TSM) – keep at 15 (same)
  • CNOOC (CEO) – now at 159.. at 150 (Chinese stocks have been hit by the emerging market currency issues and also potential defaults with the “trust” vehicles).  SNP, another Chinese oil company, hit its stop loss target and sold off Executed
  • WIPRO (WIT) – at 12.88 – make at 12 (WIPRO has had a great run, but the Indian rupee is also at risk)
  • Yandex (YNDX) – at 38, – make it 35 (Yandex had a good run, but now the Russian ruble is also subject to emerging market contagion) Exccuted

Portfolio Two

  • Urban Outfitters – URBN – at $35 (don’t want to ride this back down) Executed
  • Yandex (YNDX) – at 38, – make it 35 (Yandex had a good run, but now the Russian ruble is also subject to emerging market contagion) Executed

Portfolio Three

  • Urban Outfitters (URBN) – at $35 (don’t want to ride this back down) Executed
  • CNOOC (CEO) – now at 159.. at 150 (Chinese stocks have been hit by the emerging market currency issues and also potential defaults with the “trust” vehicles).  SNP, another Chinese oil company, hit its stop loss target and sold off Executed
  • Cliffs Natural Resources (CLF) – now at 19.33… at 18.  Cliffs was hit hard recently and we want to put a floor on this.

Portfolio Four

  • Nucor (NUE) – from $41 to $55, now $48.  At $46 KEEP
  • Seaspan (SSW) – from $15 to $25, now $21… At $18 KEEP

Portfolio Five

  • Seaspan (SSW) – from $15 to $25, now $21… At $18 KEEP
  • Yandex (YNDX) – at 38, – make it 35 (Yandex had a good run, but now the Russian ruble is also subject to emerging market contagion) Executed I thought this was set up but I missed it.  Now at $38 again will set one up at $35

Portfolio Six

  • Seaspan (SSW) – from $15 to $25, now $21… At $18 KEEP
  • Yandex (YNDX) – at 38, – make it 35 (Yandex had a good run, but now the Russian ruble is also subject to emerging market contagion) Executed