I want to float this idea for the comments, say, once a month or so.....so we get a regular on the board to post about their portfolio. Some holdings they like, dislike, or ideas about investing or discussion about the market in general. I think this might help those watching at home to participate, as I'm sure some of you have a following here. As most come to learn and make money.....
You guys (and gals!) could help them, maybe.....just a thought. I, for one, don't know what many of you hold but would like to. I think it's a way we all could get better at investing, maybe.....just saying. Also, this will not be a place to take shots at one another but a place to generate ideas and explore viewpoints. I want this to be a safe place for newbies. No point of view or question will be unimportant. Since it will be up to you regulars, I would like your opinions.
I have been pretty open with my portfolio in the past and from time to time have listed my fund positions along with a blurb about my portfolio. Since, my portfolio is a complex one and this is for beginners ... I'll explain how I started. When, I was a beginning investor many years back (around 1960) my first fund was Franklin Income Fund as it provided exposure to both the bond and stock markets. I opened this fund with seed money my great grandfather gave me around the age of twelve. My second fund was Income Fund of American as it also provided the basic exposure to stocks and bonds but from a different fund house. I opened this fund with seed money from grass cutting in my mid teenage years. Today, these two funds are my oldest and two largest positions at about six percent each within my portfolio now consisting of forty eight funds spread among five investment accounts and two bank accounts. All in all there are ten mutual fund investment sleeves plus two cash management sleeves.
Currently, my portfolio is broken up into four areas. A cash area, an income area, a growth and income area and a growth area. In my early years I filled each area with one to two funds. Moving on through the years I began to expand each area and opened sleeves in each area as size and positions grew. Today, I have two sleeves in the cash area one for demand cash and one for investment cash (savings and time deposits). In the income area I have two sleeves one a fixed income sleeve and the other a hybrid income sleeve where FKINX is found. In my growth & income area I have four sleeves which consists of a domestic equity sleeve, a domestic hybrid sleeve where AMECX is found, a global equity sleeve and a global hybrid sleeve. In the growth area of the portfolio I have four sleeves consisting of a global growth sleeve, a large/mid cap sleeve, a small/mid cap sleeve and the fourth sleeve is a specialty / theme sleeve. In addition, there is a spiff sleeve in the growth area where form time to time I'll buy a stock or index fund to overweight equities when I feel warranted. Today, due to elevated stock prices I have no spiff position. Each sleeve consist of at least three funds on upward to nine funds as found in the income sleeves. All total, there are forty eight funds. The spiff sleeve is the exception with most times having only one fund.
So, as one can see, I went the well diverisfied complex route while my high school buddy went a more simple route through time as he had some (many) investment follies (day trader). Today, he owns only two funds a bond index fund and a stock index fund. He operates off of two sleeves a cash sleeve and an investment sleeve. However, he does throttle his equity allocation from time-to-time as I do. Today, we both use the barometer (Which I've written about in other post.) which drives an equity weighting matrix that helps us align our equity weightings with changing markets. In addition, we both follow a seasonal investment strategy where we rebalance our portfolios in both the spring and fall; and, at other times should market conditions warrant.
So, there you have it. From the complex to the simple.
My age ... now pushing 70 and retired. My profession ... Corporate Credit Manager
My education ... BA, Economics
My buddy's age ... now pushing 70 and retired. His profession ... P/E Civil
His education ... BS, Engineering ... MS, Engineering Management
Words of wisdom (great grandfather's) ... "Income never goes out of style."
Wishing all ... "Good Investing."
One can read more about Old_Skeet's investment barometer (which drives an equity weighting matrix) and my portfolio through the link below. In addition, one might wish to review some of the older threads of "What are you buying ... selling ... and/or pondering?"
Good post, Skeeter! Yes, this is what I was looking for.
First question: What state do you live in, if that's ok? I would like to see where everybody is from.
How's the economy doing there? jobs? housing? construction? Are there lots of new cars on the road? Are the restaurants full? Are things booming?
Now, I would like to see what you have overseas. It's where my focus is right now.
What funds and %'s? What's your view on the dollar, if you have one? Any country specifics you are interested in? We are alike in some ways --- FXINX --- VWINX --- AMECX --- BTBFX, spiff -- hot money --right now in transports. By the way, what's your favorite rock band? Right now, I've got CCR in my head --- "Traveling Band" --- can't get it out. Great longneck music.
Art and slick: Thanks for positive words of encouragement. Yes, I will post in about a week or two. Give this some time.....see what happens. Hopefully, more regulars come to see their views and hopefully some watchers with questions. Also, would like to see what you guys hold and why.
p.s. Any children? What do they do?
Boy, your asking a lot ... Be happy with a list of funds that I currently own for you to study and follow: ABALX, AGTHX, AMCPX, AMECX, ANCFX, ANWPX, APIUX, AZNAX, BAICX, CAIBX, CAPAX, CTFAX, CWGIX, DDIAX, DEQAX, DIFAX, EADIX, FBLAX, FDSAX, FISCX, FKINX, FMTNX, FRINX, GIFAX, HWIAX, IIVAX, ISFAX, JNBAX, LABFX, LALDX, LBNDX, LPEFX, NEFZX, NEWFX, PCGAX, PCVAX, PGBAX, PGUAX, PMAIX, PMDAX, SMCWX, SPECX, SVAAX, THIFX, THOAX, TIBAX & TSIAX. I usually use VADAX for a spiff fund. In your study of these I am sure you will find the world stock funds and allocation funds that hold the foreign positions. Below is a link to Xray where you can study each one. Perhaps, through doing you will learn and find answers to the questions you seek. Now, see if you can match each fund to a sleeve.
Hertz 7.375% 1/21
Navistar 8,250% 11/21
Cash: U.S. Treasury's Laddered:
You've also made clear that at least some of your positions have large capital gains accumulated over many years and I'm wondering how that affects your evaluation. Are FKINX and AMECX funds you'd never part with because of the taxes or would you just give them a lot more leeway than a fund that was breakeven?
I'm also wondering how you dealt with things like the oil crisis, Black Monday, the internet bubble and the credit crisis? Have you always had the steady hand you seem to have now? Or was there a time where you were chasing hot new funds and learning the lessons that I've always seemed to learn the hard way?
Finally, I'm amazed that you've basically ended up with none of the funds that MFO is all about. You don't even hold any Pimco or Doubleline funds. Is that based on the criteria you've developed for choosing where to invest, what was available to you when you were making decisions or some other reason that the rest of us might want to consider incorporating into our processes?
Thanks again, LLJB
PRDGX 4 Roth TRP Dividend Growth Fund
TRAMX 1 Roth TRP Africa and Middle East
PRWCX 10 Roth TRP Cap Appreciation
PRHSX 8 Roth TRP Health Science
PRMTX 5 Roth TRP Media and Communication
PRSVX 5 Roth TRP Small Cap Valve
PRGTX 7 Roth TRP Global Technology
PREMX 4 Roth TRP Emerging Market Bonds
TRGRX 1 Rollover TRP Global Real Estate
PRISX 3 Roth TRP Finacial Services
VGENX 5 Rollover Vanguard Energy
PRNEX 6 Roth TRP Natural Resources
VIHAX 3 Roth Vanguard Intl High Dividend Fund
VGSIX 3 Roth Vanguard Real Estate
VWELX 7 Roth Vanguard Wellington
VWINX 15 Rollover Vanguard Wellsley
VINEX 5 Roth Vanguard International
VGHCX 3 Roth Vanguard Healthcare
VGWIX 1 Rollover Vanguard Global Wellsley
VGWLX 4 Roth Vanguard Global Wellington
loser stox >1%
I do count our SS as bondlike, and we do have nontrivial mortgage + heloc.
No more portfolios, please.
WOW! Got more than I bargained for. Would like to sidestep here for just a minute......
Art: You said what I tried to ask for initially. Just one portfolio at a time......offered by a volunteer in the group.....and open it up for discussion. The discussion might last a few hours or days......but, ultimately, we glean insight from that offering and move on to the next. Does that sound like a plan we want to pursue?
p.s. If so, I would like to suggest that we work with what we currently have in the way of portfolio submissions. When we are through discussing all of those, we can solicit new ones from the group.
Ted's portfolio. Simple, to the point. Ted has the experience, listen and learn.
jafink63 portfolio. Not sure what the numbers mean nor am I familiar with TRP. A few sector funds mixed in with classic Vanguard funds that have stood the test of time.
davidmorans's portfolio. For your age to have an 80/20 mix of stocks and bonds is daring. But if you don't need the money for living expenses why not.
Puddnhead's portfolio. Where is yours??
I want to thank you for your service. We know some who are in now....i.e., military. How long will you both be working? I would think maybe you should have someone look and run numbers so you know where you stand. I'm guessing TRP is you. The numbers are percentages, yes? Also, I like your Vanguard holdings. The only thing right now I see is funds with 1% in. Why so little? Maybe put that in your better funds to get a better return. Got to go. Be back later.
TRP stands for - T Rowe Price
The single numbers are % of the portfolio
TRAMX - I moved most of the money out when it made some. Like a dummy, I should of moved it all
TRGRX - Rollover from 401K. Eventually I’ll move to Roth and pay the taxes
VWGIX - New fund using money from a Rollover from 401k. I figured for $20.00 a share, might as well go ahead. It won’t boom like some of the other funds we have though, but hoping over next few years pays nice end of year returns.
I am concerned about taxation rates to some extent and use the fine ORP optimal retirement planner to forecast biting the bullet and taking more than RMD from those retirement accounts as well as earlier Roth withdrawals than one might instinctively. (The good news is that 3/4 of our total is Roth.)
But yes, daring compared with many, for sure. How the DoubleLines do at slump times will be wakening.
Old_Skeet plans, in time, to respond to all questions. But, first and before I do, I feel it only fair for our thread's host to bring his portfolio forward and also act on the assignment (sort of) I asked of him. If this is meant to be a learning exercise it is going to require some study and action on the part of our host before I make further comment.
And, remember ... My portfolio consist of five investment accounts. Don't blame me ... blame the government as they made it complicated much like they did with the tax code and filing. I remember the days when I only had one single account. Then came the ira account(s), then came the 401k account(s), and then came a joint account (with wife) and finally then came a health savings account. Heck, at one time there were more than five and this is what we've (wife & I) have got it worked down to.
Some of the funds listed are only held in one account while some listed are held in multiple accounts.
Again, when we hear from Puddenhead about his (and in a meaningful way) I'll post more with some good reading as to whys and so forths along with some life experiences that had a contributing effect on my investing.
As Art asked of you, Puddenhead ... Where is yours?
@Old_Skeet has described his process and portfolio layout many times. The funds and large number of funds, I think, are secondary to his process and portfolio construction (sleeves as he calls it). Old skeet has a system and he sticks with it always. In my opinion, that is very important - more so than what funds he chooses.
And @Ted... I can guarantee that mix of stocks, bonds and funds have multiple purposes. It appears Ted has assets for income and assets for growth. Every vehicle in place to meet his goals. Simple with a purpose.
I guess the suggested takeaway from my post would be to own funds that work towards the total return goal(s) and very importantly meet the risk tolerance of the portfolio as a whole. Owning a collection of individual funds just because individually they look good, not a portfolio... fwiw and let me throw in imho.
Good post, MikeM. This is what I'm looking for.....teaching moments.....how we can all get better. This is also why I want only board regulars to post portfolios. This is not a thread for those quietly watching at home to post their portfolios for comment. What I would like to see from those at home are questions. Learn from these guys.....ask to learn how you might make more money. And, really, that's why we're here, right? As time goes on and if we can get more to step forward, think of what we all could learn.
p.s. Yes, will post my portfolio on the next thread. Also, how do we pick the next group and how many portfolios? Will some more step forward? Must go now....
Thank you for your questions.
I guess I have to accept Puddenhead's recent comment and move on.
Now, on to your questions.
1) I track my individual postions very easily as each fund is assigned a sleeve and each sleeve is set up in Morningstar's Portfolio Manager. With this, the performance of each fund and the sleeve, the investment area, and the portfolio as a whole can be followed. If I wish to view a Morningstar report for any fund all I have to do is click on its ticker. If I wish to compare an existing fund to one under review for purchase I use the performance tab on the fund. I'm thinking I can review up to five funds this way against the subject fund. In addition, I can add the fund under review into the sleeve (or portfolio) to see how it compares to exisitng holdings.
The things I track are fund name, ticker, star rating, cost per share, current price, % below 52 week high, dividend yield, duration, maturity, shares held, position market value, weight in portfolio (sleeve), 1 week return, 1 month return, 3 month return, ytd return, 12 month return, three year return, 5 year return, 10 year return. In addition, I can check daily performance just by clicking on the tracking tab.
2) FKINX and AMECX do indeed have some sizeable capital gains associated with these two positions which are found in multiple accounts. I stopped reinvesting in these funds many years ago and directed their distribution towards other funds I had under construction.
3) Through the years I've had some lumps in investing like most folks. Back in the mid-80's I remember Black Monday very well and wanted to sell out. However, my father a skilled investor form my perspective, encouraged me not to. In fact, he bought and I stood pat. Now, I don't fear the bear so much and maintain a reasonable cash position just in case the bear growls. I generally, buy in pullbacks and sell down in the rebound staying within my asset allocation (of course).
Generally, I hold no less than three funds per sleeve. I found many years ago when I use to bet the dogs (for spiff) I did better picking three dogs to win, place or show over one dog to win. My casual trips to the track usually neted me about a 15% return. Never bet any big money usually $10.00 to $25.00 per race and would stop betting after race eight. That was back in the 80's. Now, I carry this system forward into my investing.
4) There are those on the board that are against commission based advise. I'm one that is not. For me to purchase no load funds I'd have to open another brokerage account that charges a wrap fee inorder to hold these no load funds. The only thing that I currently pay my broker comes from what the mutual funds companies send to them in the form of 12b1 fees. Many of my purchases are at nav (or reduced commissions) due to the amount I have invested with some fund companies. I can also do nav exchanges between funds with the same fund family without any charge. Morningstar estimates my total mutal fund expenses are 0.87% which is less than the account wrap fee I'd pay to buy no load. The wrap fee is on-going and the commission, if and when applicable, is not. From my perspective, in the long run, I've got the low cost investment venue for me.
I hope this provides the answers you seek.
Granted, you may have painted yourself into a corner already by paying the load already, and some of your A shares may not be available at the super market brokerages, but many probably are. I just don't know what wrap fees means for individual funds.
In essence, if you already paid the load then you have nothing to gain by moving, but I would never suggest that path (load funds) to anyone else who visits MFO.
Many of my funds that I own have been held for a good number of years. Back in the 70's when I started to expand my portfolio there were few no load funds to invest in. Most funds were broker sold. Today things are a little different with more choices. Again, for me to switch out to no load would entail great expense. And, besides when the commission are spread over the years I have owned many of these funds ... Well, it just does not amount to much. Wrap fees and fee based accounts at a good number of firms are running North of one percent. And, I am back of that. So, from my perspective I got the better deal. And, I plan to stick with it.
Good for you if you are skating free of fees, etc. I'm thinking you are paying in the form of transaction fees or something on those lines; but, perhaps just not realizing it.
Wrap fee ...
From reply #4 . I can also do nav exchanges between funds with the same fund family without any charge.
Are these exchanges tax free or in a tax free account.?
NAV exchanges are allowed in both my taxable account and ira account. I've done them in both. However, if capital gains result in nav exchanges between funds in a taxable account this is considered a taxable event and capital gains taxes are due. If a loss takes place you get credit for that to at tax time. Remember, nav exchanges are only allowed in A share funds and between funds of the same family. Years back you could do nav exchanges in A share funds from a fund in one family to a fund in another family commission fee. I'm thinking this is not so today. But, I do remember it was possible years back.
By the way ... I am no fan of the recent DOL's new rules on retirement accounts even though my ira is grand fathered I now have restrictions that were not in place prior to. Although I can do nav exchanges within the fund familys I currently own I can not make new buys although I can do sells and take distributions in cash or in kind. The DOL's recent ruling is forcing investors into fee based accounts for new money. From my perspective ... that sucks.