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.
Starting this month, my portfolio takes a new look! It is now broken by account by account, which makes it easier for me to track. Take a look here. It is also updated in real time, instead of once a month as before.
My transactions in July are listed as follows:
| Stock | Action | Cost | Price per share | Impact |
| GILD | New Buy | $2,524.00 | $81.42 | 0.34% |
| AAN | Add | $2,508.00 | $22.59 | 0.34% |
| SNY | New Buy | $2,200.00 | $41.22 | 0.30% |
| SRCL | New Buy | $2,008.70 | $91.30 | 0.27% |
| RHHBY | New Buy | $1,959.24 | $31.60 | 0.26% |
| AZO | New Buy | $1,589.08 | $794.54 | 0.21% |
| BEN | Add | $1,539.45 | $34.21 | 0.21% |
| NVS | New Buy | $1,100.00 | $81.05 | 0.15% |
| POT | Add | $992.43 | $15.48 | 0.13% |
| DISCA | New Buy | $990.00 | $24.81 | 0.13% |
| RL | New Buy | $979.90 | $97.99 | 0.13% |
| GGG | New Buy | $949.00 | $73.00 | 0.13% |
| RHI | New Buy | $937.56 | $36.06 | 0.13% |
| CVS | New Buy | $930.00 | $93.00 | 0.13% |
| UHS | New Buy | $896.00 | $128.00 | 0.12% |
| BIIB | New Buy | $722.37 | $240.79 | 0.10% |
| NKE | Add | $650.00 | $55.73 | 0.09% |
| VFC | Add | $650.00 | $61.51 | 0.09% |
| DIS | New Buy | $600.00 | $97.55 | 0.08% |
| HFC | New Buy | $517.00 | $23.50 | 0.07% |
| PII | New Buy | $516.00 | $86.00 | 0.07% |
| AAPL | New Buy | $500.00 | $94.64 | 0.07% |
| AXP | New Buy | $500.00 | $59.54 | 0.07% |
| FOX | New Buy | $500.00 | $27.02 | 0.07% |
| GPS | Add | $500.00 | $20.88 | 0.07% |
| TGT | Add | $500.00 | $69.89 | 0.07% |
| VIAB | Add | $500.00 | $40.74 | 0.07% |
| TIF | Add | $496.00 | $62.00 | 0.07% |
| FOSL | New Buy | $493.00 | $29.00 | 0.07% |
| WFC | New Buy | $477.50 | $47.75 | 0.06% |
| CCFN | New Buy | $474.00 | $39.50 | 0.06% |
| KSS | Add | $400.00 | $37.49 | 0.05% |
| SON | Add | $257.77 | $48.23 | 0.03% |
| BDX | Add | $206.77 | $171.70 | 0.03% |
| AFL | Add | $200.00 | $71.64 | 0.03% |
| BRKB | Add | $200.00 | $142.38 | 0.03% |
| EMR | Add | $200.00 | $53.85 | 0.03% |
| KO | Add | $200.00 | $45.61 | 0.03% |
| XOM | Add | $200.00 | $94.71 | 0.03% |
| VMI | Add | $160.97 | $136.76 | 0.02% |
| HCN | Add | $150.00 | $74.82 | 0.02% |
| MCD | Add | $150.00 | $125.77 | 0.02% |
| NSC | Add | $150.00 | $92.25 | 0.02% |
| WMT | Add | $142.00 | $73.47 | 0.02% |
| YORW | Add | $136.60 | $30.40 | 0.02% |
| PEP | Add | $120.21 | $106.66 | 0.02% |
| BUD | Add | $100.00 | $128.60 | 0.01% |
| MOCO | Add | $100.00 | $14.68 | 0.01% |
| NNN | Add | $100.00 | $51.73 | 0.01% |
| UL | Add | $100.00 | $47.90 | 0.01% |
| MSFT | Add | $93.68 | $53.32 | 0.01% |
| INTC | Add | $71.33 | $31.88 | 0.01% |
| EXC | Add | $68.00 | $36.41 | 0.01% |
| PPL | Add | $25.52 | $37.75 | 0.00% |
| PNY | Add | $14.15 | $56.83 | 0.00% |
| SJI | Add | $12.04 | $31.79 | 0.00% |
| ISH | Reduce | -$0.03 | -$0.51 | 0.00% |
| LGCY | Reduce | -$0.33 | -$1.65 | 0.00% |
| SAN | Reduce | -$0.48 | -$4.25 | 0.00% |
| ZAHLY | Reduce | -$0.59 | -$0.12 | 0.00% |
| CEL | Reduce | -$0.92 | -$7.02 | 0.00% |
| PDLI | Reduce | -$1.26 | -$3.56 | 0.00% |
| VEA | Reduce | -$1.38 | -$36.32 | 0.00% |
| DV | Reduce | -$1.53 | -$22.17 | 0.00% |
| OGZPY | Reduce | -$2.09 | -$4.29 | 0.00% |
| MPC | Reduce | -$2.27 | -$37.83 | 0.00% |
| ELNK | Reduce | -$2.44 | -$6.85 | 0.00% |
| CPLP | Reduce | -$2.92 | -$3.85 | 0.00% |
| BK | Reduce | -$3.27 | -$39.88 | 0.00% |
| HNNMY | Reduce | -$3.29 | -$5.93 | 0.00% |
| MRO | Reduce | -$3.43 | -$13.14 | 0.00% |
| MVC | Reduce | -$5.58 | -$8.05 | 0.00% |
| NTT | Reduce | -$5.76 | -$46.83 | 0.00% |
| BVN | Reduce | -$6.23 | -$12.53 | 0.00% |
| BFR | Reduce | -$6.55 | -$20.28 | 0.00% |
| AGNC | Reduce | -$6.80 | -$19.48 | 0.00% |
| CSX | Reduce | -$7.53 | -$28.40 | 0.00% |
| ICE | Reduce | -$8.71 | -$263.94 | 0.00% |
| TLK | Reduce | -$9.31 | -$63.51 | 0.00% |
| NAT | Reduce | -$9.56 | -$12.78 | 0.00% |
| HPQ | Reduce | -$11.59 | -$14.09 | 0.00% |
| MDLZ | Reduce | -$12.65 | -$43.92 | 0.00% |
| MRK | Reduce | -$14.06 | -$58.58 | 0.00% |
| AZN | Reduce | -$14.33 | -$31.06 | 0.00% |
| CTL | Reduce | -$14.50 | -$30.72 | 0.00% |
| DTEGY | Reduce | -$15.75 | -$16.70 | 0.00% |
| IMBBY | Reduce | -$16.13 | -$52.03 | 0.00% |
| HPE | Reduce | -$16.71 | -$20.31 | 0.00% |
| LUKOY | Reduce | -$18.64 | -$43.88 | 0.00% |
| DGS | Reduce | -$21.05 | -$40.83 | 0.00% |
| TLSYY | Reduce | -$21.37 | -$21.50 | 0.00% |
| CQP | Reduce | -$25.33 | -$27.21 | 0.00% |
| RBCAA | Reduce | -$28.28 | -$29.97 | 0.00% |
| VWO | Reduce | -$30.04 | -$36.86 | 0.00% |
| WBA | Reduce | -$35.12 | -$81.39 | 0.00% |
| CEO | Reduce | -$37.18 | -$126.72 | -0.01% |
| CHL | Reduce | -$39.61 | -$62.25 | -0.01% |
| T | Reduce | -$39.64 | -$42.76 | -0.01% |
| ESLT | Reduce | -$52.99 | -$96.82 | -0.01% |
| KHC | Reduce | -$60.20 | -$85.63 | -0.01% |
| VIG | Reduce | -$60.66 | -$84.96 | -0.01% |
| LLY | Reduce | -$75.56 | -$83.40 | -0.01% |
| LMT | Reduce | -$86.67 | -$254.16 | -0.01% |
| SB | Reduce | -$91.17 | -$1.11 | -0.01% |
| JNJ | Reduce | -$111.92 | -$124.77 | -0.02% |
| EVEP | Reduce | -$229.41 | -$2.50 | -0.03% |
| OPTI | Sold Out | -$329.99 | -$0.55 | -0.04% |
| CRC | Sold Out | -$331.49 | -$13.26 | -0.04% |
| OIBRQ | Sold Out | -$340.99 | -$0.50 | -0.05% |
| TRONC | Sold Out | -$366.07 | -$14.08 | -0.05% |
| APA | Sold Out | -$396.79 | -$56.47 | -0.05% |
| TSCDY | Reduce | -$418.94 | -$6.65 | -0.06% |
| E | Sold Out | -$426.65 | -$32.82 | -0.06% |
| CIG | Sold Out | -$462.33 | -$2.51 | -0.06% |
| BP | Reduce | -$488.79 | -$36.71 | -0.07% |
| HIMX | Reduce | -$560.95 | -$8.60 | -0.08% |
| CACQ | Sold Out | -$575.99 | -$12.00 | -0.08% |
| NUS | Sold Out | -$596.86 | -$49.03 | -0.08% |
| SWRAY | Sold Out | -$620.56 | -$11.52 | -0.08% |
| GSH | Reduce | -$638.81 | -$23.66 | -0.09% |
| PTR | Reduce | -$653.75 | -$69.99 | -0.09% |
| SOUHY | Sold Out | -$704.01 | -$7.16 | -0.09% |
| IAG | Sold Out | -$748.98 | -$4.99 | -0.10% |
| FTD | Sold Out | -$821.98 | -$27.40 | -0.11% |
| EZPW | Sold Out | -$1,035.48 | -$9.50 | -0.14% |
| SC | Sold Out | -$1,166.52 | -$11.11 | -0.16% |
| OJSCY | Sold Out | -$1,235.38 | -$5.23 | -0.17% |
| MBT | Sold Out | -$1,253.83 | -$8.83 | -0.17% |
| ERY | Short | -$1,444.79 | $14.45 | -0.19% |
| DO | Sold Out | -$1,485.30 | -$24.99 | -0.20% |
| RYAM | Sold Out | -$1,495.95 | -$14.00 | -0.20% |
| ERX | Short | -$1,580.67 | $31.61 | -0.21% |
| PKX | Sold Out | -$1,626.73 | -$46.31 | -0.22% |
| RDSA | Sold Out | -$1,906.13 | -$55.77 | -0.26% |
| TOT | Sold Out | -$1,985.71 | -$48.74 | -0.27% |
| PBR | Sold Out | -$2,286.04 | -$8.01 | -0.31% |
| SKM | Sold Out | -$2,322.05 | -$20.98 | -0.31% |
| CIGC | Sold Out | -$2,512.46 | -$1.79 | -0.34% |
| EDZ | Short | -$2,754.77 | $27.55 | -0.37% |
| FAS | Short | -$2,806.76 | $28.07 | -0.38% |
| TZA | Short | -$3,169.75 | $31.70 | -0.43% |
| VALE | Reduce | -$3,303.68 | -$5.13 | -0.45% |
| FAZ | Short | -$3,441.54 | $34.42 | -0.46% |
| BBL | Sold Out | -$4,371.85 | -$26.37 | -0.59% |
| Bought | $34,258.27 | 4.62% | ||
| Sold | -$53,942.14 | -7.27% | ||
| Net | -$19,683.87 | -2.65% |
Purchases
This month, I initiated 22 new positions, most of which are attractively priced stocks near 52-week low with low dividend payout. I had an annual bonus money to spend and also recently did a partial ACAT from TDA account into Merrill Edge and a partial ACAT from Merrill Edge to open a new brokerage account with Interactive Brokers (IB), to take advantage of low margin rates.
This month, I initiated 22 new positions, most of which are attractively priced stocks near 52-week low with low dividend payout. I had an annual bonus money to spend and also recently did a partial ACAT from TDA account into Merrill Edge and a partial ACAT from Merrill Edge to open a new brokerage account with Interactive Brokers (IB), to take advantage of low margin rates.
I have not started buying on margin yet, as I try to burn through most of my excess cash first before going on margin, and hope that the stock market might have a correction before I go on margin. I intend to leverage between 1.2 to 1.5. Considering that the stock margin return is roughly 10% a year, even just a 1.2 leverage would boost return to 12%. The difference over 40 years is staggering. Assuming $100,000 initial investment, it would grow to $9,305,097 at 12%, but only $4,525,926 at 10% annual return. That's more than double! At the currently elevated market levels, starting at leverage 1.2-1.3 is probably prudent.
Sales
I sold a lot of old stock that were low quality and no longer fit well with my investment strategy. Some of the other sales are for partial shares sold during the ACAT process. I also sold short some 3x leveraged inverse ETFs, to take advantage of the time decay with these ETFs. I only shorted a total of $15,198.28, out of a total account value of $108,088.30 at IB, so I can tolerate a great deal of fluctuations before these leverage inverse ETFs eventually go to zero.Portfolio turnover was 7.27% in July. This will probably be a record high for some time.
Here is how my assets, liabilities, and net worth have changed over the past month:
| Beginning balance on 6/30/2016 | + Cash inflow /(outflow) | + $ P/L | = Ending Balance on 7/31/2016 | % P/L | |
| ASSETS | |||||
| Current assets | |||||
| Cash | 35,467.16 | 39,291.69 | 0.00 | 74,758.85 | 0.00% |
| Bonds | 13,276.02 | 0.00 | (21.57) | 13,254.45 | -0.16% |
| Stocks | 493,373.43 | (19,683.87) | 25,699.18 | 499,388.74 | 5.21% |
| Total current assets | 542,116.61 | 19,607.82 | 25,677.61 | 587,402.04 | 4.74% |
| Tax-deferred retirement account | 125,267.21 | 1,649.07 | 3,943.36 | 130,859.64 | 3.15% |
| Roth IRA | 63,120.84 | 0.00 | 1,528.38 | 64,649.22 | 2.42% |
| Gold | 14,199.17 | 0.00 | 353.69 | 14,552.85 | 2.49% |
| Other non-current assets | 5,000.00 | 0.00 | 0.00 | 5,000.00 | 0.00% |
| Total assets | 749,703.83 | 21,256.89 | 31,503.04 | 802,463.75 | 4.20% |
| LIABILITIES & EQUITY | |||||
| Liabilities | |||||
| Current liabilities | 108.24 | (108.24) | 0.00 | 0.00 | |
| Long-term debt | |||||
| Student loan | 7,862.62 | (137.71) | 0.00 | 7,724.91 | |
| Margin loan | 0.00 | 0.00 | 0.00 | 0.00 | |
| Total liabilities | 7,970.86 | (245.95) | 0.00 | 7,724.91 | |
| Equity (net worth) | 741,732.97 | 21,502.84 | 31,503.04 | 794,738.84 | 4.25% |
My personal rate of return was 4.25% in July.
My monthly performance against the S & P 500 is shown below:
| 2016 | My Portfolio Return | S & P 500 TR |
| Jan | -3.69% | -4.96% |
| Feb | 5.74% | -0.12% |
| Mar | 3.99% | 6.79% |
| Apr | 1.39% | 0.39% |
| May | 0.21% | 1.80% |
| Jun | 3.41% | 0.26% |
| Jul | 4.25% | 3.52% |
| YTD | 16.00% | 7.52% |
