Our "Mutual Fund"

[Robandcindy2]

Just the big picture of our portfolio. No single asset is greater than 2% of our portfolio at present. I track the Spec Stocks(growth-non-dividend) and Emergency Fund (6 months take-home pay, separately). Apologies if this doesn't format correctly:


  Portfolio.pdf (Size: 32.34 KB / Downloads: 28)

Overall returning 10.62%
Yielding 3.44% on cost

[ChadR]

Good yield. Any way you could have the individual stocks listed?

[Kerim]

Hard to argue with your weightings. But agree would be interested in the stock list as well.

Is the 2% cash allocation (not the emergency fund) your dry powder for new purchases? Or are new purchases from new money, and the cash is just a cushion against volatility?

[Robandcindy2]

(05-28-2014, 05:25 PM)Kerim Wrote: Hard to argue with your weightings. But agree would be interested in the stock list as well.

Is the 2% cash allocation (not the emergency fund) your dry powder for new purchases? Or are new purchases from new money, and the cash is just a cushion against volatility?

We have several IRAs plus 401K, all with money markets for sweep funds. The 2% was just a round number that was close to the value at the time. Just a target. I always reinvest our dividends. When I get our list up you'll see that the portfolio is on cruise control. Rarely selling and buying. Mostly saving new monies to add/rebalance positions.

I spend more time fighting the Boglehead in me that wants 40 % in bonds QE or no QE. That's the hard part now-ignoring history and being low on the bond side. Many arguments both ways.

I'll try and format a list of our stocks and get it up in a few days. Everyone has to promise not to laugh- we are at the far end of stock count. I sleep very well with this set up however.

[Robandcindy2]

Equity Portion of "Our Mutual Fund":

Sensitive
Energy 10.00%
ConocoPhillips COP
Chevron Corporation CVX
Occidental Petroleum OXY
Exxon Mobil Corporation XOM
BP plc (ADR) BP
Ensco PLC Class A ESV
Royal Dutch Shell plc (ADR) RDS-A
Royal Dutch Shell plc (ADR) RDS-B
Williams Companies Inc WMB
Enbridge Energy Management, L.L.C. EEQ
Total S.A. ADR TOT
Kinder Morgan Management LLC KMR
Spectra Energy Corp. SE

Industrials 10.00%
Lockheed Martin Corporation LMT
Waste Management, Inc. WM
Norfolk Southern Corp. NSC
Paychex, Inc. PAYX
General Electric Company GE
UPS UPS
Stanley Black & Decker SWK
Emerson Electric Co. EMR
Textainer Group Holdings TGH
Caterpillar CAT

Technology 9.00%
Apple Inc. AAPL
Intel Corporation INTC
Maxim Integrated Products MXIM
Cisco CSCO
Microsoft Corporation MSFT
CA, Inc. CA
KLA-Tencor Corporation KLAC
Qualcom QCOM
Accenture PLC ACN
First Trust NASDAQ Technology Dividend Index ETF TDIV

Communication Services 5.00%
AT&T Inc. T
Verizon VZ
BCE Inc. (USA) BCE
Rogers Communications (USA) RCI
Vodafone VOD

Cyclical
Basic Materials 5.00%
Air Products APD
Compass Minerals CMP
Dow Chemical DOW
International Paper IP
Nucor NUE
Rayonier RYN
BHP Billiton plc (ADR) BBL
Potash POT

Consumer Cyclical 6.00%
Coach, Inc. COH
Darden DRI
Ford F
General Motors GM
Home Depot HD
Leggett & Platt, Inc. LEG
Mattel MAT
McDonald's Corporation MCD
PetMed Express PETS
Starbucks Corporation SBUX
Shaw Communications Inc (USA) SJR

Financial Services 5.00%
AFLAC Incorporated AFL
Cincinnati Financial Corporation CINF
Community Trust Bancorp CTBI
JP Morgan JPM
New York Community Bancorp, Inc. NYCB
Wells Fargo & Co WFC
Bank of Montreal (USA) BMO
The Bank of Nova Scotia (USA) BNS
HSBC Holdings plc HSBC
Toronto-Dominion Bank (USA) TD
Westpac Banking Corp ADR WBK

Business Development Companies (BDC's) 2.00%
Ares Capital Corporation ARCC
FS Investment Corp FSIC
Hercules Technology Growth Capital HTGC
Main Street Capital Corporation MAIN
New Mountain Finance Corp NMFC
TCP Capital TCPC

Real Estate Investment Trusts (REIT) 4.00%
American Realty Capital Properties ARCP
Digital Realty Trust, Inc. DLR
National Retail Properties NNN
Realty Income Corp O
Vanguard REIT ETF VNQ
Vanguard International Equity Index Funds VNQI

Health Care REITs 4.00%
HCP, Inc. HCP
Medical Properties Trust, Inc. MPW
National Health Inv. NHI
Omega Healthcare Investors Inc OHI
Health Care REIT HCN

Defensive
Consumer Defensive 20.00%
Archer Daniels Midland Company ADM
ConAgra Foods, Inc. CAG
Colgate-Palmolive Company CL
The Clorox Co CLX
CVS Caremark Corporation CVS
Dr. Pepper Snapple DPS
General Mills GIS
Kellog K
Kimberly Clark KMB
The Coca-Cola Company KO
Kraft Foods Group Inc KRFT
Lorillard Inc. LO
Altria MO
Nestle NSRGY
PepsiCo, Inc. PEP
Pinnacle Foods PF
The Procter & Gamble Company PG
Phillip Morris, Intl PM
SYSCO Corporation SYY
Target Corporation TGT
Tupperware Brands TUP
Unilever plc (ADR) UL
Walgreen Company WAG
Wal-Mart Stores, Inc. WMT

Health Care 10.00%
AbbVie Inc ABBV
Abbott ABT
AstraZeneca plc (ADR) AZN
Baxter International Inc. BAX
GlaxoSmithKline plc (ADR) GSK
Johnson & Johnson JNJ
Eli Lilly LLY
Medtronic MDT
Merck & Co., Inc. MRK
Novartis AG (ADR) NVS
Pfizer PFE
Market Vectors Pharmaceutical ETF PPH
Vanguard Healthcare ETF VHT

Utility Income Stocks 10.00%
American Electric Power Company, Inc. AEP
Avista AVA
Duke Energy Corp DUK
Consolidated Edison, Inc. ED
National Grid plc (ADR) NGG
Public Service Enterprise Group Inc. PEG
PPL Corporation PPL
Southern SO
Vectren Corp VVC
WGL Holdings WGL
Westar Energy Inc WR
Artesian Resources ARTNA
Middlesex Water Company MSEX

---

Only a handful of these positions exceed 1% of our portfolio. This is one way I minimize risk. Maybe not text book but it works for me "at this phase of my investing development/education."

As I seriously get close to retirement (mandatory by age 65 as an airline pilot) I plan on shrinking the number of stocks significantly, raising the "current" yield conservatively closer to 4%-4.5% as well as bringing our fixed income assets back in line with our Boglehead Family (assuming QE has settled down and the bond world has normalized....ah, yeah....that's gonna happen! ) When I retire, portfolio management will be my full time job (that and teaching my better half to take over when I croak from all those hours locked in a tiny closet bathing in gamma rays at 39,000 feet living on airline food and coffee.) :-)

[Ok Red]

Wow. You own the S&P 500....

[Dividend Watcher]

OMG, Rob, that's an awesome portfolio. Why did we have to promise not to laugh?

I own many and there were quite a few I'm interested in. My problem is I didn't want to dilute the portfolio too much with my limited capital.

Thanks for sharing.

[Robandcindy2]

(06-02-2014, 11:08 PM)Dividend Watcher Wrote: OMG, Rob, that's an awesome portfolio. Why did we have to promise not to laugh?

I own many and there were quite a few I'm interested in. My problem is I didn't want to dilute the portfolio too much with my limited capital.

Thanks for sharing.

Only because the "current philosophy" is 20-50 stocks.

It is a lot to watch. But with low total percentages, if I screw up, I mean their CEO screws up it is a minor mistake. So far working being up 11.0% as of yesterday.

Lucked out because of a mandatory retirement rollover at work pushed me into the $2.00 commission schedule. You know, this is America, I believe in us (and a few good companies overseas) so why not?

---

(06-02-2014, 09:52 PM)Ok Red Wrote: Wow. You own the S&P 500....

Maybe, not a big "fan" of S&P this or DOW that....just Dividend Growers.

My personal benchmark is the Vanguard Wellington Fund. Ginormous track record, smart folks, and our go to fund if our family has a disaster and we can't manage all of this ourselves.

[TomK]

Wow, Rob -- that list is no joke. I tend to think that perhaps it is a bit over-diversified, but as I read through the names, they look like an excellent list of companies. And if you don't mind tracking it all, good on 'ya.

I suppose that you could argue that once you are that diversified, you're just going to average the same return as the index, but as a dividend growth person, that wouldn't be considered a problem. What you'd really want to know is whether you were able to get into all or most of those names at good valuations. I tend to buy opportunistically, when a good company that I am watching reaches an appealing value, so my portfolio grows slowly (especially recently!).

Thanks for sharing the list.

[Robandcindy2]

(06-03-2014, 01:37 PM)TomK Wrote: Wow, Rob -- that list is no joke. I tend to think that perhaps it is a bit over-diversified, but as I read through the names, they look like an excellent list of companies. And if you don't mind tracking it all, good on 'ya.

I suppose that you could argue that once you are that diversified, you're just going to average the same return as the index, but as a dividend growth person, that wouldn't be considered a problem. What you'd really want to know is whether you were able to get into all or most of those names at good valuations. I tend to buy opportunistically, when a good company that I am watching reaches an appealing value, so my portfolio grows slowly (especially recently!).

Thanks for sharing the list.

Been building this for several years now. I used to use several online valuation calculators to determine "fair price" (which I still consider the toughest question we all face). I now rely almost 90% on FastGraphs for my initial "fair value" estimate. If something is fairly priced or under value it receives further scrutiny. My next stop is Morningstar's Fair Value price. If it passes both of those I move on to other considerations. If not, and it is a company I really want (i.e. KMB...still waiting!) I come up with "my buy price", note it on my spreadsheet and move on....

[Robandcindy2]

Just to be sure folks new to DG don't get the wrong idea, here are my screw ups:

(Bought prices are ave cost per share averaged over all accounts including reinvested dividends and commission when applicable)

CSCO Down $140 (was down around $600 at one point) Bought at $25.25

CA Down $721 Bought at $33.16

POT Down $165 Bought (actually repurchased) at $37.12

COH Down $603 Bought at $52.67

F Down $118 Bought at 17.08

GM Down $272 Bought at $39.18

PETS Down $401 Bought at $15.77

ARCC Down $103 Bought at $17.75

MAIN Down $121 Bought at $32.72

ARCP Down $186 Bought at $13.04

DLR Down $221 Bought at $60.35

VNQ Down $833 (!!! What's up with that Vanguard????!)

VNQI Down $854

MPW Down $205 Bought at $14.13

PM Down $100 Bought at $89.81

TGT Down $329 Bought at $61.11

ED Down $455 (Seriously? This is ConEd in the NY metro area???)

ARTNA Down $120 Bought at $22.42

I can pretty much make an argument for holding on to each of these (either business model, estimated growth/return, cyclical stock) but sometimes..."ya just wanna dump those looooosers!"

Overall up 10.93% (lifetime) as of yesterdays close. Not great but receiving 3.4% in yield.