Friday, December 18, 2015

Portfolio housekeeping and BTI addition

I've been thinking of ways to make everything better around here.  I have made some changes to the portfolio tracking spreadsheet. I'll details those changes below. I'm also looking at ways to create a better blog layout as the current one is pretty blah. I'm not the most tech savvy person so it's a work in progress.

If you have checked out the portfolio's google doc spreadsheet the past few weeks you would have noticed it was pretty basic. I've updated so that each addition I make is to be considered as if I added one share. This will make it possible to calculate a portfolio weighting of each individual holding. I felt this is fair and more transparent since in the real world a fund manager is subjected to the same scrutiny.  I'm also including tracking of the SPY ETF which I feel is representative as the primary channel retail investors participate in the S&P 500. Now we can see the results of the portfolio over time versus the SPY. I hope to beat the SPY, but considering many people smarter than me with more resources struggle to I realize it's an uphill battle. I'll calculate the portfolio returns for the end of the year and continue to do so quarterly. It's not important to update it daily as these are meant to be long term holds. I'm also going to calculate an unweighted return for the portfolio just to see how the individual picks and their respective timing perform.  I believe this will be useful information.

There is a dividend column which represents the amount of dividends received per share as stated in the companies official dividend declaration.  Actual cash dividends from overseas based companies will be different for people in other countries depending on their currency so this is a more transparent representation. For example the portfolio received a dividend from BUD at a declared rate of $1.77 but after conversion to USD it came to 1.709/share. The dividends will be used to calculate an overall return.  So if I have 2 shares in a company and receive a $.50/share dividend the total dividend received will be $1.00.

I'm also adding a spreadsheet with the reported earnings of each company. It will be a work in progress but will allow us to create a long term view of how the company has increased earnings over time.  As time goes on it will give us a quick view to a companies earning history.


I added to BTI the other day as I feel any price under $115 is a decent value for the company. Plus I love tobacco stocks. I could care less that fewer people smoke every year. This industry will continue to buy back shares thus increasing our share of earnings. Also current industry players are well insulated from competition due to government regulations which make it a unique investing opportunity.  I want to own the companies with the best profit margins and highest dividends in this sector.

That's all for now. Feel free to follow on Twitter when you can see during the day when an add is being made to the portfolio as I don't always put up a post the day of. I'm working on getting a feed directly onto the blog which should be cool to see. You can follow at @LngHaulInvestor.  Thank you for stopping by. Have a great weekend!

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