Saturday, January 3, 2015

Portfolio Update December 2014

Greetings friends. Another month and year has gone by. This is the first of my monthly and end-of-year portfolio update on this blog, and hopefully with many more updates to come. I will be relying primarily on dividends from this portfolio to cover my annual expenses when I retire. You can see my current portfolio holding below and here, and my monthly expenses here.

At the end of every month, I will update my portfolio and comment on any changes. I do that for accountability and also so you may glean some ideas on how I allocate my capital. You have the opportunity to learn from what I do well, so you can do the same, as well as what I do poorly, so you will not have to repeat my mistakes.

My Current Portfolio Holdings, as of December 31, 2014:
Ticker$ Current
Price
Shares
Held
Cost
Basis
$ Market
Value
%
Weight
%
Dividend
Yield TTM
VWO39.56578.8223,691.1022,898.125.25%2.86
BDX139.86146.2412,127.6820,453.134.69%1.61
EXC37.57516.5216,781.7319,405.664.45%3.34
STRA72.63202.007,886.0814,671.263.36%0
AFL61.08207.9710,427.6212,702.812.91%2.46
AZN70.4167.827,296.8111,814.532.71%3.98
AGNC22.32411.469,661.089,183.792.10%14.93
HPQ40.24219.254,064.908,822.622.02%1.56
LMT193.3144.564,713.568,613.891.97%2.85
XOM92.8382.297,323.817,638.981.75%2.92
MHFI88.6685.694,302.497,597.281.74%1.35
SAN8.42894.976,112.657,535.651.73%7.55
BRK.B149.1749.765,313.377,422.701.70%0
DV44.28167.073,695.597,397.861.69%0.74
NSC109.1562.224,738.056,791.311.56%2.03
BMTC30.73212.295,167.146,523.671.49%2.36
INTC36.36173.314,308.496,301.551.44%2.48
APOL33.26187.003,567.966,219.621.42%0
LO62.6499.005,998.416,201.361.42%3.91
RWEOY30.78196.007,794.926,032.881.38%3.25
PG90.4465.074,457.955,884.931.35%2.78
MOCO17.29330.044,864.795,706.391.31%2.46
VALE7.94644.228,001.215,115.111.17%1.62
OGZPY4.561,123.757,461.705,124.301.17%7.34
MAT30.47166.725,503.435,079.961.16%4.91
SON43.47113.854,063.314,949.061.13%2.91
VIG81.0260.373,618.584,891.181.12%1.95
WMT85.956.163,902.004,824.141.11%2.24
PEG41.9114.623,897.084,802.581.10%3.57
VEA37.69126.043,940.014,750.451.09%3.68
MSFT46.76100.133,409.434,682.081.07%2.48
CHL58.4978.033,715.794,563.971.05%3.11
PEP94.4447.273,607.654,464.181.02%2.68
UL39.98108.724,499.924,346.631.00%3.69
EMR61.7970.274,031.394,341.980.99%2.85
ESLT59.5970.542,576.124,203.480.96%2.07
CSX35.85107.762,255.423,863.200.88%1.74
TSCDY8.63442.004,875.263,814.460.87%6.28
MCD93.2639.083,749.733,644.600.83%3.5
BCR167.4820.432,034.223,421.620.78%0.52
JNJ104.5232.672,035.673,414.670.78%2.64
HIMX7.99421.221,069.903,365.550.77%3.35
LUKOY38.9587.874,346.053,422.540.78%7.3
YORW22.65143.622,822.133,252.990.75%2.49
K65.4849.732,814.723,256.320.75%2.9
GIS53.1160.992,662.213,239.180.74%3.02
SKM27.34110.611,453.423,024.080.69%3.71
RBCAA24.39117.142,464.632,857.040.65%2.98
DGS42.7965.872,983.252,818.580.65%3.17
WBA7633.431,243.262,540.680.58%1.71
VFC73.7633.112,150.162,442.190.56%1.48
CEO135.7717.942,711.452,435.710.56%4.88
RYAM22.54106.002,875.782,389.240.55%0.63
TESS28.383.761,009.312,370.410.54%2.76
BAMM1.681,396.154,928.412,345.530.54%0
ESI9.35245.001,901.202,290.750.52%0
PPL36.3662.871,925.082,285.950.52%4.1
RDS.A66.9833.732,151.302,259.240.52%5.56
BBL42.7252.852,665.232,257.750.52%5.63
DO37.2359.202,024.052,204.020.50%1.36
FNDE23.1793.852,416.642,174.500.50%1.37
BP38.1256.692,210.342,161.020.50%6.14
KO42.1450.612,099.812,132.710.49%2.89
BUD111.7418.912,050.032,113.000.48%2.9
SC20105.001,840.652,100.000.48%0.76
TOT51.1640.182,097.802,055.610.47%6.2
NKE95.0321.511,850.722,044.100.47%1.04
LLY70.0628.701,051.572,010.720.46%2.84
BVN9.67205.502,106.381,987.190.46%0.36
PDLI7.68250.151,508.401,921.150.44%7.78
TLSYY24.1372.991,087.551,761.250.40%5.23
PAYX46.2437.771,405.041,746.480.40%3.16
OIBR3.15519.302,518.611,635.800.37%0
TLK44.9136.141,162.621,623.050.37%3.08
HCBK10.13153.301,464.021,552.930.36%1.58
POT35.4943.491,265.561,543.460.35%3.96
PT1.051,416.002,421.361,486.800.34%12.86
SGTZY4.06371.002,392.951,506.260.35%3.97
SBRCY4.04346.002,138.281,397.840.32%7.96
PBR6.76201.382,064.151,361.330.31%0
EZPW11.66109.00997.351,270.940.29%0
HCN76.9516.561,025.561,274.290.29%4.2
BCMXY23.8252.00835.641,238.640.28%3.82
SB3.84312.942,253.171,201.690.28%5.63
MPC91.6412.96283.951,187.650.27%2.04
OGS41.9327.931,007.991,171.100.27%2.04
PTR110.410.301,085.721,137.120.26%4.22
CTL39.5927.061,053.451,071.310.25%5.46
FTD34.0630.00967.501,021.800.23%0
MBT7.17142.001,525.081,018.140.23%12.56
MDLZ36.7927.18481.90999.950.23%1.6
MRK57.1917.12590.13979.090.22%3.12
CIG4.94184.44959.09911.130.21%
OAOFY23.5438.001,086.42894.520.20%4.9
EONGY16.853.00916.90890.400.20%3.54
CIG.C5.17166.66923.30861.630.20%7.15
TLKGY23.9936.34711.90871.800.20%0
PKX63.7113.12888.62835.880.19%2.99
NAT10.2180.921,599.79826.190.19%6.06
MWE68.8912.08247.76832.190.19%5.21
OJSCY3.49236.001,109.20823.640.19%6.99
PEO23.7634.11900.85810.450.19%1.76
DTEGY15.7850.94637.26803.830.18%4.19
FSBK8100.29453.31802.320.18%1.26
MYTAY6.27124.001,634.32777.480.18%0
MRO28.627.04508.62773.340.18%2.83
GSH24.4531.59597.37772.380.18%2.32
CLD9.2682.00993.02759.320.17%0
DYN30.7224.00764.16737.280.17%0
T33.8721.63626.40732.610.17%5.48
IAG2.81250.00567.50702.500.16%0
SWRAY12.9753.32609.98691.560.16%3.3
IDCBY14.7345.00548.10662.850.15%4.89
EVEP21.0131.80695.78668.120.15%16.04
BACHY14.1845.00495.00638.100.15%4.75
AEO13.7445.30549.94622.420.14%3.6
NGLS49.212.28201.88604.180.14%6.45
ITYBY85.766.96429.01596.890.14%4.42
DRI58.4210.22460.92597.050.14%3.75
CICHY16.5336.00504.00595.080.14%5.03
KRFT62.649.50306.85595.080.14%3.43
CPLP7.9773.91628.97589.060.13%11.63
TPUB22.8226.00494.00593.320.14%0.76
CRC5.44106.00602.08576.640.13%0
VIAB75.47.50550.05565.500.13%1.71
PNW68.648.19354.38562.160.13%3.36
ISH14.8336.43787.62540.260.12%6.71
PNY39.4413.77501.78543.090.12%3.25
HNNMY8.261.56403.22504.790.12%2.67
NUS42.2412.00486.00506.880.12%3.16
ABEV5.9584.07505.26500.220.11%3.53
PM81.026.00493.50486.120.11%4.76
CACQ10.0448.00504.00481.920.11%0
HSBC47.0710.00490.50470.700.11%5.19
E34.9813.00518.44454.740.10%6.81
BFR13.4833.32369.85449.150.10%0
APA63.837.00473.90446.810.10%1.52
ICE217.642.03172.20441.810.10%1.19
CQP32.5812.76217.81415.720.10%5.31
TAXI9.9641.00499.79408.360.09%9.49
LGCY12.2127.98423.62341.640.08%21.04
OPTI0.55600.001,392.00330.000.08%0
IBM162.062.02362.61327.360.07%2.65
POM27.1412.02191.12326.220.07%4.01
LINC2.68119.131,589.19319.270.07%6.43
IEMG46.596.25316.44291.190.07%2.3
NTT25.6311.12248.42285.010.07%3.18
LC24.9310.00150.00249.300.06%0
LYG4.6550.00162.00232.500.05%0
ELNK4.4244.81366.99198.060.05%4.56
CEL8.423.13644.40194.290.04%2.77
TGT75.332.57149.75193.600.04%2.5
BND82.652.22177.00183.480.04%2.51
QCCO1.61113.87412.21183.330.04%0
PGN3.1755.00499.95174.350.04%4.51
BCS14.9211.00163.13164.120.04%2.37
KSS59.592.74149.80163.280.04%2.56
AMC25.635.56100.08142.500.03%2.29
WPG17.427.00123.13121.940.03%2.9
MVC10.0211.54104.09115.630.03%5.49
LPHI0.7130.10870.3791.070.02%30.02
ZA0.66118.00200.6077.880.02%0
BK40.461.0827.1943.700.01%1.63
HSY103.710.2625.0926.960.01%1.96
GOOGL529.550.0527.2426.480.01%0
BKS23.51.008.7023.500.01%0
ALN115.0031.6515.000.00%0
BPI11.081.0017.8511.080.00%0
BBEP7.631.4420.0010.990.00%28.58
NUOT0.3410.005.003.400.00%0
PGN3.170.411.331.300.00%4.51
375,877.09437,158.18100%3.15

As of December 31, 2014 my portfolio contains 171 stocks, valued at $437,209.81. This is an increase of $136,737.50, or 46% over my 2013 year end portfolio value. This was mostly due to my high savings rate of about 89% in 2014. My personal rate of return was only about 8.5% in 2014, underperforming the S&P 500 by about 5%, mainly due to my international stock concentration.

My transactions in December are listed as follows:
StockActionCostCost per shareImpact
PGNSell-2348.372.91-0.54%
VWOBuy1,112.2839.020.25%
SBRCYBuy1,082.835.500.25%
LUKOYBuy1,063.8437.990.24%
MBTBuy1,029.059.990.24%
OGZPYBuy1,002.074.700.23%
CEOBuy678.80135.760.16%
OJSCYBuy616.004.400.14%
CRCBuy602.405.680.14%
BBLBuy540.0045.000.12%
VALEBuy529.927.360.12%
CIGCBuy523.395.000.12%
EXCBuy521.5437.170.12%
BPBuy517.8938.030.12%
PBRBuy515.668.740.12%
TSCDYBuy504.008.000.12%
OIBRBuy502.090.370.11%
RYAMBuy501.6022.800.11%
OAOFYBuy501.0326.370.11%
PGNBuy500.503.250.11%
SGTZYBuy500.505.500.11%
PTBuy439.571.130.10%
AFLBuy279.2859.600.06%
XOMBuy254.9188.790.06%
PEGBuy241.2042.200.06%
BMTCBuy190.4529.100.04%
LMTBuy165.48192.730.04%
LCBuy15015.000.03%
NSCBuy135.73108.930.03%
SONBuy134.6944.290.03%
EMRBuy132.1162.810.03%
DGSBuy100.6844.330.02%
BDXBuy100.00138.610.02%
MOCOBuy100.0017.720.02%
PNYBuy100.0038.550.02%
YORWBuy100.0021.370.02%
All OthersBuy1,093.190.25%
Total14,714.313.37%

December was a busy month of investing for me, as I tried to get most of my idle cash invested, and many bargains presented themselves, amid the Russian and commodity stock sell-off.

Purchases
Most of the my purchases are in Russian and Brazil stocks where the valuation is too compelling to ignore. Russian stock market is trading at a CAPE of only 5, compared to 28 for the U.S.. Instead of paying 11 times earnings and 220% of book value for an energy company like ExxonMobil, you can pay only 2 times earnings and 29% of book value for the Russian energy giant Gazprom. Gazprom stock can go up 500% and still be cheaper than ExxonMobil. 

I can't time the bottom in oil and commodity prices or anything else, but at the current depressed prices there is more room on the upside than down. I will continue to average down as Russian and commodity stocks become cheaper.

LendingClub was a one-time opportunity to buy the stock at the IPO offer price of $15 per share as a user of LendingClub's website. I indicated for 350 shares (the maximum allowed for me), and got an allocation of 250 shares. The stock is rank speculation. LC is unprofitable despite tremendous growth, sells at 14x book value, compared to only 1-2x for most US banks with proven track record of profitability and dividends. LC popped 60% on the first trading day and has been range bound since. I sold 240 shares and kept 10 shares for fun. My current stake is small enough, so even if LC goes to zero I would be able to sleep soundly at night. Who knows, maybe LC will go on to become a 10-bagger and I will shoot myself in the leg for having sold and not bought more instead. I highly doubt it though.

Most of my domestic stock purchases are part of monthly direct stock purchase plan, currently $1250 monthly in 12 stocks.

"All Others" include dividends reinvested, which I elect for both my brokerage accounts and DSPPs to invest cash automatically.

Sales
I sold 807 shares of Paragon Offshore to harvest some losses to offset some of my short-term capital gains from the LendingClub sale. I still believe the stock is deeply undervalued due to a combination of lower oil prices and as an unloved spin-off. I plan to buy it back after 31 days, unless better opportunities are found elsewhere.

What do you think about my portfolio? How did your portfolio perform in 2014? Where do you see opportunity now? Thanks for reading.

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