Friday, December 2, 2016

Portfolio Update November 2016: Net Worth Increased 3.22% to $853,030.02 Amid a Strong Month for Equities

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 November are listed as follows:

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StockActionCostPrice per share% of Portfolio
NVOAdd$1,972.10$32.870.24%
NVSAdd$1,200.00$71.930.15%
EDAdd$1,190.00$70.000.14%
NKEAdd$1,150.00$50.330.14%
BENAdd$1,067.20$33.350.13%
GILDAdd$949.00$73.000.12%
VFCAdd$650.00$54.890.08%
BUDAdd$600.00$105.060.07%
ULAdd$600.00$39.610.07%
AMGNNew Buy$564.00$141.000.07%
BBBYAdd$546.00$39.000.07%
ANAdd$498.00$41.500.06%
HSICAdd$441.00$147.000.05%
CVSAdd$412.50$82.500.05%
YORWAdd$239.49$30.660.03%
AFLAdd$200.00$68.490.02%
BRKBAdd$200.00$143.430.02%
EMRAdd$200.00$52.160.02%
KOAdd$200.00$41.060.02%
VMIAdd$200.00$140.750.02%
WMTAdd$200.00$69.930.02%
XOMAdd$200.00$85.870.02%
DISAdd$150.00$98.380.02%
MCDAdd$150.00$118.840.02%
NNNAdd$105.63$42.080.01%
BDXAdd$100.00$172.200.01%
EXCAdd$100.00$30.000.01%
INTCAdd$100.00$34.760.01%
MSFTAdd$100.00$60.410.01%
PEPAdd$100.00$107.270.01%
SNYAdd$100.00$40.190.01%
SONAdd$100.00$50.180.01%
MOCOAdd$56.25$17.470.01%
GISAdd$30.85$61.820.00%
HCNAdd$26.70$63.050.00%
PAYXAdd$18.37$57.410.00%
VTIAdd$15.85$111.910.00%
VEAAdd$9.25$36.120.00%
BCRAdd$5.36$218.910.00%
VWOAdd$2.16$36.360.00%
LQDAdd$0.86$118.130.00%
VGITAdd$0.77$65.640.00%
TIPAdd$0.61$114.230.00%
SJNKAdd$0.37$26.750.00%
VNQAdd$0.20$83.330.00%
VCSHAdd$0.07$85.370.00%
BBYSold Out-$1,063.10$46.22-0.13%
Bought$14,752.591.79%
Sold-$1,063.10-0.13%
Net$13,689.491.66%

Purchases
This month, I initiated one new positions in Amgen, a good growth stock near 52-week low. Total net purchase this month amounted to $14,752.59. This brought my cash in brokerage accounts down to 13K, just 1.6% of my portfolio, reducing much of my cash drag. 

I continued to add to many of my holdings in low payout stocks selling near 52-week lows. Since Trump's victory, US stocks have gotten a boost while foreign stocks have taken a hit. Consequently, more of my purchases are in beaten down foreign stocks such as NVO, NVS, BUD, and UL. I expect the the trend of US stocks outperforming foreign stocks over the past few years to reverse in the near future. 


Sales
I sold out Best Buy near new 52-week high, giving me a gain of $409.90, or 63% return. It is a more risky stock for my taste and I have over $10k in net accumulated realized losses, so it makes sense to harvest some gains in stocks that have gone too high.

Portfolio turnover was 1.79% in November, which is around average.

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

Beginning balance
on 11/1/2016
+ Cash inflow
/(outflow)
+ $ P/L= Ending Balance
on 11/30/2016
% P/L% Portfolio
ASSETS
Current assets
Cash29,465.17(4,280.34)0.0025,184.830.00%2.95%
Bonds12,583.13370.42294.7413,248.292.34%1.55%
Stocks575,120.2113,324.7616,104.37604,549.342.80%70.87%
Total current assets617,168.519,414.8416,399.11642,982.462.66%75.38%
Tax-deferred retirement account137,070.331,618.99(2,676.96)136,012.36-1.95%15.94%
Roth IRA60,672.000.002,907.6463,579.644.79%7.45%
Gold13,760.510.00(1,162.84)12,597.67-8.45%1.48%
Other non-current assets5,000.000.000.005,000.000.00%0.59%
Total assets833,671.3511,033.8315,466.95860,172.131.86%100.84%
LIABILITIES & EQUITY
Liabilities0.00%
Current liabilities0.000.000.000.000.00%
Long-term debt0.00%
Student loan7,287.96(145.85)0.007,142.110.84%
Margin loan0.000.000.000.000.00%
Total liabilities7,287.96(145.85)0.007,142.110.84%
Equity (net worth)826,383.3911,179.6815,466.95853,030.021.87%100.00%

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My n
et worth increased 3.22% to $853,030.02, due to a combination of cash inflows (1.35%) and investment gains (1.87%).
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
YTD16.53%9.85%Good

Despite a solid month for me, the S&P 500 performed even better, unfortunately, making November the fourth month YTD I trailed the index. This is mainly due to poor performance of international stocks (-1.6%) and gold (-8.45%) this month. My YTD return is still beating the index withal. I hope that holds up for the year with just one more month to come.

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