Wednesday, September 4, 2013

Monthly Update: August 2013

I'd be lying if I told you I wasn't looking forward to this post. No more fake demo accounts for people who'd rather watch silver porn and be miserable about their status in life. This is about sharing ideas and progress with fellow investors.
It's with pleasure that I now get to join the other progress blogs in giving an update on how the past month went.

The spreadsheet is available for totals so I won't be reposting them here. Instead I will discuss the activities and any actions. I'm sure that my format will change over the next few months as I get a feel for how I want to report my updates. I might even shamelessly steal reporting ideas from fellow progress blogs lol...

Portfolio Results
Purchases and Sales
     Bought 1 AAPL @ $560.95
     Bought 2 IBM @ $188.83
     Sold 4.32 SBUX @ $72.41 (+27.16%)

Income
     Monthly Dividends
     BLV: $0.89
     JNK: $1.42
     NDRO: $4.16
     ARCP: $2.59
     PSEC: $7.49
     PCY: $1.91
     Quarterly Dividends
     HAS: $2.72
     STX: $7.34
     SBUX: $0.91
     WHZ: $33.60
     Rental Income
     Townhouse 1: $555

Portfolio Weighting
     Income Weighting by Asset Class
     Stock: 20.53%
     BDC: 25.74%
     REIT: 8.85%
     Energy: 33.57%
     Gold: 0%
     Bonds: 11.31%
     Total Value Weighting by Asset Class
     Stock: 40.52%
     BDC: 13.92%
     REIT: 7.47%
     Energy: 14.54%
     Gold: 0%
     Bonds: 11.02%
     Cash: 12.52%

Portfolio Review
August saw a new investing income record for this portfolio receiving $63.03. The bad news is that half of that came from one source, WHZ. That was to be expected as it was one of my two highest positions along with PSEC. Land trusts are front end loaded for their profit. Wells drop in pressure and thus production each year. As WHZ is new I want to get profit now and then sell later. WHZ is not behaving as most trusts do where share price remains stable or increases. It is dropping along with the payments and not recovering which I had considered possible. I have owned it for about a year now and funny enough the position drawdown is -21.73% yet the yield is 21.74%.

I sold SBUX for a nice gain especially considering I bought it for this portfolio in March. I love the product, company, and its future. However their valuation is way too high for me. Historically they have some room to run but I'll let Fastgraphs speak for me...

The blue line is their history P/E ratio. The orange line is their Ben Graham fair value price. The black line is their actual share price. I'll share my thoughts on IBM later but I replaced SBUX with it...



My REIT income and total value weighting is too low. I am wanting to increase that as new funds come in. However there are concerns on how a rising interest rate will hurt REITs. Much of that is getting priced in and I have seen my two REITs, ARCP and OHI, drop recently. For now I will be patient and add in later.

Precious Metals has no position right now and I don't see that changing. I want to wait for gold to get under $1,000 and silver to get under $10. Even with covered calls being generated off of GLDI and SLVO, their base underlying asset is a non income producing metal. I want a margin of safety.

I received only $555 from my property manager for my rental. Normally they are paid $950 from my renter, then they take their 10% fee and pass on to me $855. Last month however I had to pay for $300 of fence repair. Four posts had to be dug out and replaced and their four sections replaced. It was the original fence when the house was built in early 1980s and I was expecting it. This is exactly why I set aside 10% for repairs. It eases the impact of months like this. I have my Real Est Savings account to ease the burden if I was needing to live off my full amount.


Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

1 comment:

  1. I watched a video on Sbux recently, on youtube. On not sure of the age of the video. Talking about expansion in China and India, the two most populated countries.

    The issue I have with starbucks is that there product costs a lot due to it tastes a lot better. But it definitely a better atmosphere in the coffee shops as compared to Tim Horton's and McDonalds.

    ReplyDelete