Monday, October 31, 2016

Portfolio Update October 2016: Net Worth Edged Up Slightly to $826,383.39

The time has come for my monthly portfolio update. 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.


Follow my real-time portfolio here.

My transactions in October are listed as follows:

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StockActionCostPrice per share% of Portfolio
DISAdd$2,150.00$92.150.26%
NKEAdd$2,150.00$51.900.26%
VFCAdd$2,150.00$54.770.26%
GILDAdd$2,029.92$75.180.25%
CVSAdd$1,905.31$86.610.23%
FOSLAdd$1,885.13$27.320.23%
NVSAdd$1,700.00$76.720.21%
BBBYAdd$1,499.00$42.830.18%
RHBBYAdd$1,490.50$29.810.18%
KOAdd$1,200.00$41.760.15%
ANAdd$1,163.00$46.520.14%
SNYAdd$1,100.00$38.640.13%
HSICAdd$1,050.00$150.000.13%
PIIAdd$1,050.00$75.000.13%
DHRAdd$1,010.10$77.700.12%
SRCLAdd$1,004.25$77.250.12%
CTSHAdd$1,000.00$50.000.12%
FOXAdd$1,000.00$25.170.12%
RLAdd$1,000.00$100.630.12%
VIABAdd$1,000.00$37.690.12%
BENAdd$978.75$36.250.12%
DLTRNew Buy$920.52$76.710.11%
NVOAdd$522.73$40.210.06%
AXPAdd$500.00$60.020.06%
WTRNew Buy$500.00$29.720.06%
VMIAdd$212.29$127.730.03%
BDXAdd$208.35$174.990.03%
BRKBAdd$200.00$143.150.02%
EMRAdd$200.00$52.550.02%
NSCAdd$200.00$91.370.02%
WMTAdd$200.00$72.070.02%
XOMAdd$200.00$86.640.02%
MCDAdd$150.00$111.930.02%
PEPAdd$120.36$107.360.01%
BUDAdd$100.00$128.970.01%
EXCAdd$100.00$33.000.01%
INTCAdd$100.00$37.640.01%
MSFTAdd$100.00$57.610.01%
NNNAdd$100.00$47.130.01%
SONAdd$100.00$52.850.01%
ULAdd$100.00$47.980.01%
PEGAdd$58.97$42.120.01%
PPLAdd$25.78$34.560.00%
SJIAdd$12.14$28.460.00%
OGSAdd$10.16$61.580.00%
VTIAdd$5.41$110.430.00%
VEAAdd$2.98$37.210.00%
VWOAdd$0.68$37.800.00%
LQDNew Buy$0.29$120.830.00%
VGITNew Buy$0.26$65.820.00%
TIPNew Buy$0.21$116.670.00%
SJNKNew Buy$0.13$26.800.00%
VNQNew Buy$0.07$84.340.00%
CTLSold Out-$850.48$31.50-0.10%
VALESold Out-$2,137.45$6.25-0.26%
PNYSold Out-$2,511.18$60.00-0.31%
Bought$34,467.294.19%
Sold-$5,499.11-0.67%
Net$28,968.183.52%


Purchases
This month, I initiated 2 significant new positions in Dollar Tree and Aqua America and added significant amounts to numerous others, most of which are attractively priced stocks near 52-week low with low dividend payout. Total net purchase this month amounted to $28,968.18. This brought my cash in brokerage accounts down to 18K, or a little over 2% of my portfolio, which will decelerate my stock buying spree next month.

The new buys in tiny amounts are from my wisebanyan account I recently opened for an account opening bonus. It is not an easy way to invest with minimal effort with no fees except for fees associated with the underlying ETFs themselves (which range from 0.05% expense ratio for VTI to 0.40% for SJNK, with weighted average of 0.08% for the entire portfolio with maximum of 91% allocation to stocks). Advantages include dollar cost averaging, diversified portfolio, low fees, and automatic rebalancing). The main disadvantage, however, like other robo-advisors, is cookie cutter portfolio allocation that mandates a certain allocation to bonds, 9% in this case. Bonds are terrible in today's environment, given near zero interest rates, tax inefficiency, and inflation risk.


Sales
I sold out Century Link for its high dividend yield and slow growth, as well as Vale for poor fundamentals. Both stocks were liquidated with a loss, -19% and -36%, respectively, much to my chagrin.

Piedmont was sold out as the company was acquired by Duke Energy in a 100% cash offer. I began monthly dollar cost averaging in the stock since November 2014 up till the merger announcement and made a 59% return on this investment.

Portfolio turnover was 4.19% in October.

Here is how my assets, liabilities, and net worth have changed over the past month:


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Beginning balance
on 10/1/2016
+ Cash inflow
/(outflow)
+ $ P/L= Ending Balance
on 10/31/2016
% P/L% Portfolio
ASSETS
Current assets
Cash40,172.49(10,707.32)0.0029,465.170.00%3.57%
Bonds12,522.5487.44(26.85)12,583.13-0.21%1.52%
Stocks556,915.8528,968.18(10,763.82)575,120.21-1.93%69.59%
Total current assets609,610.8818,348.30(10,790.67)617,168.51-1.77%74.68%
Tax-deferred retirement account138,260.931,618.99(2,809.59)137,070.33-2.03%16.59%
Roth IRA63,504.080.00(2,832.08)60,672.00-4.46%7.34%
Gold14,170.840.00(410.34)13,760.51-2.90%1.67%
Other non-current assets5,000.000.000.005,000.000.00%0.61%
Total assets830,546.7319,967.29(16,842.68)833,671.35-2.03%100.88%
LIABILITIES & EQUITY
Liabilities0.00%
Current liabilities0.000.000.000.000.00%
Long-term debt0.00%
Student loan7,433.99(146.03)0.007,287.960.88%
Margin loan0.000.000.000.000.00%
Total liabilities7,433.99(146.03)0.007,287.960.88%
Equity (net worth)823,112.7420,113.32(16,842.68)826,383.39-2.05%100.00%

My personal rate of return was -2.05% in October, not a good month for me. This is the first monthly loss since January.

Net worth edged up slightly to $826,383.39, due to cash inflow, partially offset by investment loss.

My monthly performance against the S & P 500 is shown below:


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2016My Portfolio ReturnS & P 500 TR
Jan-3.69%-4.96%Good
Feb5.74%-0.12%Good
Mar3.99%6.79%Bad
Apr1.39%0.39%Good
May0.21%1.80%Bad
Jun3.41%0.26%Good
Jul4.25%3.69%Good
Aug0.34%0.14%Good
Sep0.34%0.02%Good
Oct-2.05%-1.81%Bad
YTD14.39%5.92%Good

2 comments:

Passive Income Dude said...

Great job JTTF. That's quite an active month. I'm curious why you don't just pay off your student loan with that much cash available and that one item as your only (and SMALL) liability.

JTF said...

Thanks for commenting! I had thought about that actually. I keep my student loan for a couple reasons. One is that my rate is very low, only 2.4%. I should be able to earn more than that by investing the cash. If only I could get a loan at that rate without risk of recall (i.e. forced liquidation of the loan at lender's notice), I would be happy to get as big a loan as I can afford and invest it in stocks. I don't have a margin loan yet for that reason (possibility of recall) because stocks are too high now with significant downside risk. Another reason I keep my student loan is that it helps my credit score.