Sunday, January 1, 2017

Portfolio Update December 2016

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 December are listed as follows:
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StockActionCostPrice per share% of Portfolio
BUDAdd$2,100.00$102.090.25%
VFCAdd$1,650.00$53.790.19%
NKEAdd$1,150.00$50.550.13%
ESRXNew Buy$1,032.45$68.830.12%
EDAdd$1,024.80$73.200.12%
GILDAdd$1,011.50$72.250.12%
FOSLAdd$1,004.25$25.750.12%
CERNNew Buy$1,003.80$47.800.12%
DLTRAdd$1,002.56$77.120.12%
VIABAdd$1,000.00$35.290.12%
KOAdd$700.00$40.650.08%
NVSAdd$700.00$68.200.08%
NSCAdd$470.00$107.230.06%
XOMAdd$327.48$89.640.04%
AFLAdd$324.81$69.440.04%
EMRAdd$301.61$57.370.04%
EXCAdd$239.96$35.100.03%
VMIAdd$200.00$152.910.02%
SONAdd$163.07$54.640.02%
DISAdd$150.00$103.880.02%
MCDAdd$150.00$123.530.02%
BDXAdd$100.00$165.320.01%
MSFTAdd$100.00$63.620.01%
NNNAdd$100.00$43.290.01%
SNYAdd$100.00$39.120.01%
YORWAdd$100.00$38.900.01%
BMTCAdd$67.92$37.270.01%
SPGIAdd$32.07$114.700.00%
KAdd$24.49$73.320.00%
SJIAdd$12.66$34.480.00%
OGSAdd$10.22$59.770.00%
PNWAdd$5.72$73.200.00%
VTIAdd$5.50$113.330.00%
WTRAdd$3.22$28.140.00%
VEAAdd$3.00$35.890.00%
VWOAdd$0.77$35.500.00%
LQDAdd$0.27$116.880.00%
VGITAdd$0.24$64.690.00%
TIPAdd$0.19$115.150.00%
SJNKAdd$0.12$27.270.00%
VNQAdd$0.07$81.400.00%
VCSHAdd$0.06$82.190.00%
TLNSold Out-$112.00$14.00-0.01%
BNDSold Out-$161.14$80.57-0.02%
EDZSold Short-$2,759.77$27.60-0.32%
Bought$16,372.811.92%
Sold-$3,032.91-0.36%
Net$13,339.901.56%


Purchases
This month, I initiated new positions in Express Scripts (ESRX) and Cerner (CERN), both zero payout growth stocks near 52-week lows. 

I also continued to add to many of my holdings in low payout stocks selling near 52-week lows. 


Sales
I sold out BND to close out my bond position in time for rising interest rates and also to effectively close out one of my brokerage accounts wherein BND was the sole remaining holding. This will simply my recordkeeping.

Cash acquisition merger of Talen Energy (TLN) was completed, handing me a small loss on the stock. 

Emerging markets are still in the doldrums, so I sold short the 3X EM Bear ETF (EDZ), hoping to capitalize on an EM rebound.
Portfolio turnover was 1.92% in December, which is around average.

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


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Beginning balance
on 12/1/2016
+ Cash inflow
/(outflow)
+ $ P/L= Ending Balance
on 12/31/2016
% P/L% Equity
ASSETS
Current assets
Cash25,184.832,595.500.0027,780.330.00%3.14%
Bonds13,248.29(513.85)33.2112,767.650.25%1.44%
Stocks604,549.3412,233.118,628.70625,411.151.43%70.78%
Total current assets642,982.4614,314.768,661.91665,959.131.35%75.37%
Tax-deferred retirement account136,012.361,618.993,932.03141,563.382.89%16.02%
Roth IRA63,579.640.002,061.5565,641.193.24%7.43%
Gold12,597.670.00(189.98)12,407.69-1.51%1.40%
Other non-current assets5,000.000.000.005,000.000.00%0.57%
Total assets860,172.1315,933.7514,465.51890,571.391.68%100.79%
LIABILITIES & EQUITY
Liabilities
Current liabilities0.000.000.000.000.00%
Long-term debt
Student loan7,142.11(146.16)0.006,995.950.79%
Other loans0.000.000.000.000.00%
Total liabilities7,142.11(146.16)0.006,995.950.79%
Equity (net worth)853,030.0216,079.9114,465.51883,575.441.70%100.00%

My net worth increased 3.58% to $883,575.44, due to a combination of cash inflows (1.89%) and investment gains (1.70%).

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
Nov1.87%3.71%Bad
Dec1.70%1.98%Bad
201618.51%12.03%Good

December was the third straight month I trailed the S&P 500, albeit only by 28 basis points. The fourth quarter was bad for international stocks relative to US stocks. Nonetheless, my poor relative performance in the last quarter was not enough to offset my strong performance from earlier in the year. In the end, I handily beat the S&P 500, thanks to outperformance of value stocks from the beginning of the year. I wish every year could be like this. 

That's a wrap for now. I will be reviewing my balance sheet and goals in 2016 in separate posts. Stay tuned!

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