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:
| Stock | Action | Cost | Price per share | % of Portfolio |
| DIS | Add | $2,150.00 | $92.15 | 0.26% |
| NKE | Add | $2,150.00 | $51.90 | 0.26% |
| VFC | Add | $2,150.00 | $54.77 | 0.26% |
| GILD | Add | $2,029.92 | $75.18 | 0.25% |
| CVS | Add | $1,905.31 | $86.61 | 0.23% |
| FOSL | Add | $1,885.13 | $27.32 | 0.23% |
| NVS | Add | $1,700.00 | $76.72 | 0.21% |
| BBBY | Add | $1,499.00 | $42.83 | 0.18% |
| RHBBY | Add | $1,490.50 | $29.81 | 0.18% |
| KO | Add | $1,200.00 | $41.76 | 0.15% |
| AN | Add | $1,163.00 | $46.52 | 0.14% |
| SNY | Add | $1,100.00 | $38.64 | 0.13% |
| HSIC | Add | $1,050.00 | $150.00 | 0.13% |
| PII | Add | $1,050.00 | $75.00 | 0.13% |
| DHR | Add | $1,010.10 | $77.70 | 0.12% |
| SRCL | Add | $1,004.25 | $77.25 | 0.12% |
| CTSH | Add | $1,000.00 | $50.00 | 0.12% |
| FOX | Add | $1,000.00 | $25.17 | 0.12% |
| RL | Add | $1,000.00 | $100.63 | 0.12% |
| VIAB | Add | $1,000.00 | $37.69 | 0.12% |
| BEN | Add | $978.75 | $36.25 | 0.12% |
| DLTR | New Buy | $920.52 | $76.71 | 0.11% |
| NVO | Add | $522.73 | $40.21 | 0.06% |
| AXP | Add | $500.00 | $60.02 | 0.06% |
| WTR | New Buy | $500.00 | $29.72 | 0.06% |
| VMI | Add | $212.29 | $127.73 | 0.03% |
| BDX | Add | $208.35 | $174.99 | 0.03% |
| BRKB | Add | $200.00 | $143.15 | 0.02% |
| EMR | Add | $200.00 | $52.55 | 0.02% |
| NSC | Add | $200.00 | $91.37 | 0.02% |
| WMT | Add | $200.00 | $72.07 | 0.02% |
| XOM | Add | $200.00 | $86.64 | 0.02% |
| MCD | Add | $150.00 | $111.93 | 0.02% |
| PEP | Add | $120.36 | $107.36 | 0.01% |
| BUD | Add | $100.00 | $128.97 | 0.01% |
| EXC | Add | $100.00 | $33.00 | 0.01% |
| INTC | Add | $100.00 | $37.64 | 0.01% |
| MSFT | Add | $100.00 | $57.61 | 0.01% |
| NNN | Add | $100.00 | $47.13 | 0.01% |
| SON | Add | $100.00 | $52.85 | 0.01% |
| UL | Add | $100.00 | $47.98 | 0.01% |
| PEG | Add | $58.97 | $42.12 | 0.01% |
| PPL | Add | $25.78 | $34.56 | 0.00% |
| SJI | Add | $12.14 | $28.46 | 0.00% |
| OGS | Add | $10.16 | $61.58 | 0.00% |
| VTI | Add | $5.41 | $110.43 | 0.00% |
| VEA | Add | $2.98 | $37.21 | 0.00% |
| VWO | Add | $0.68 | $37.80 | 0.00% |
| LQD | New Buy | $0.29 | $120.83 | 0.00% |
| VGIT | New Buy | $0.26 | $65.82 | 0.00% |
| TIP | New Buy | $0.21 | $116.67 | 0.00% |
| SJNK | New Buy | $0.13 | $26.80 | 0.00% |
| VNQ | New Buy | $0.07 | $84.34 | 0.00% |
| CTL | Sold Out | -$850.48 | $31.50 | -0.10% |
| VALE | Sold Out | -$2,137.45 | $6.25 | -0.26% |
| PNY | Sold Out | -$2,511.18 | $60.00 | -0.31% |
| Bought | $34,467.29 | 4.19% | ||
| Sold | -$5,499.11 | -0.67% | ||
| Net | $28,968.18 | 3.52% |
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.
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 | ||||||
| Cash | 40,172.49 | (10,707.32) | 0.00 | 29,465.17 | 0.00% | 3.57% |
| Bonds | 12,522.54 | 87.44 | (26.85) | 12,583.13 | -0.21% | 1.52% |
| Stocks | 556,915.85 | 28,968.18 | (10,763.82) | 575,120.21 | -1.93% | 69.59% |
| Total current assets | 609,610.88 | 18,348.30 | (10,790.67) | 617,168.51 | -1.77% | 74.68% |
| Tax-deferred retirement account | 138,260.93 | 1,618.99 | (2,809.59) | 137,070.33 | -2.03% | 16.59% |
| Roth IRA | 63,504.08 | 0.00 | (2,832.08) | 60,672.00 | -4.46% | 7.34% |
| Gold | 14,170.84 | 0.00 | (410.34) | 13,760.51 | -2.90% | 1.67% |
| Other non-current assets | 5,000.00 | 0.00 | 0.00 | 5,000.00 | 0.00% | 0.61% |
| Total assets | 830,546.73 | 19,967.29 | (16,842.68) | 833,671.35 | -2.03% | 100.88% |
| LIABILITIES & EQUITY | ||||||
| Liabilities | 0.00% | |||||
| Current liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% | |
| Long-term debt | 0.00% | |||||
| Student loan | 7,433.99 | (146.03) | 0.00 | 7,287.96 | 0.88% | |
| Margin loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00% | |
| Total liabilities | 7,433.99 | (146.03) | 0.00 | 7,287.96 | 0.88% | |
| Equity (net worth) | 823,112.74 | 20,113.32 | (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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| 2016 | My Portfolio Return | S & P 500 TR | |
| Jan | -3.69% | -4.96% | Good |
| Feb | 5.74% | -0.12% | Good |
| Mar | 3.99% | 6.79% | Bad |
| Apr | 1.39% | 0.39% | Good |
| May | 0.21% | 1.80% | Bad |
| Jun | 3.41% | 0.26% | Good |
| Jul | 4.25% | 3.69% | Good |
| Aug | 0.34% | 0.14% | Good |
| Sep | 0.34% | 0.02% | Good |
| Oct | -2.05% | -1.81% | Bad |
| YTD | 14.39% | 5.92% | Good |
