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Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
4/2/14-No assets among monitored portfolios have been sold since the last entry.
The following is my regular summary of quarterly results (statistics through 3/31/14) for the asset approaches followed here:
| Portfolio or Market Index | Date Began Monitoring | Average Asset Hold Period | Average Change | Annualized Performance |
|---|---|---|---|---|
| Berkshire Hathaway, Class B | 6/3/05 | 3.14 years | 59.17% | 15.96% |
| Dividend Value | 5/20/11 | 1.17 years | 14.20% | 12.01% |
| Low Price to Book Value | 5/14/09 | 1.00 year | 19.13% | 19.13% |
| S&P 500 Index (SPX) | 5/14/09 | 4.88 years | 109.65% | 16.38% |
Observations:
As was true at the end of the last quarter, we have exceeded our current targets for total equity dividends and book value and should have no difficulty assuring the total 2014 year-end dividend and book value goals (of at least $20,096 and $1,004,816, respectively).
As mentioned previously, guiding principles here include that our portfolio's total equity book value shall increase a minimum of 13.5% a year, while maintaining the dividend yield on that book value at 2.0% or better. In the long run, increases in book value tend to result in higher market values. Most of my wife's and my holdings are in tax-deferred accounts. Given that, even after taxes these levels of book value advancement plus dividends are likely to lead to average annual long-term equity returns of 15% or more.
Through the close of trading on 3/31/13, our net asset value (all after-debt holdings, such as bond and stock assets, reserves, collectibles, and real estate equity) has risen to $1,345,749, despite our having only about 60% in equity holdings. Over $288,000 (almost 26%) of liquid assets are in money market accounts, insurance against a market downturn.
My preferred overall equity market price to total equity book value is 0.9 or below. As of 3/31/14, the ratio of our total stocks plus stock mutual funds [$836,144] to total book value [$938,172] stands at 0.89.
Despite the S&P 500 Index having had an unusually high average performance since early March, 2009 (a reaction to the severe downturn just preceding that period), our monitored strategies/holdings are competitive with the major market averages as represented by that index's usual historical return of about 9.6-10% a year. Assuming their inceptions were identical, the returns of an equal investment (33 1/3% each) in our BRK/B shares and those of our Dividend Value and Low Price to Book Value strategies (in each case with the records of both our open and closed positions factored in) would have averaged an annual performance of 15.70%. Once dividends were included, that combined strategies total return would have been about 18%.
For those interested, these are the present Low Price to Book Value portfolio open positions: ABLT; ACAS; AEG; AGII; AHL; ANAT; AOSL; AUQ; BBOX; BDR; BIF; CDE; CEP; CLF; CNA; COCO; ELP; EZPW; FVE; GENC; GURE; HMY; HNR; HWG; IAG; KCLI; LUKOY; MANT; MSN; MT; NTT; NWLI; PBR; PFIN; PKX; PRE; PZE; QCCO; REGI; RFP; RGA; SCHN; SGMA; SNE; SSRI; STLY; STRL; TATT; TDC; UMC; and VOXX.
And here are our current Dividend Value Portfolio holdings: AP; BGCP; BRKS; COP; CSPI; DCM; EC; ELP; ESV; IAG; INTC; PSEC; RDS/A; RGR; STO; SUP; T; TICC; UVV; VIV; and WSTG.
Good investing in the months ahead!
4/6/14-No assets among monitored portfolios have been sold since the last entry.
Alphabetically, my current top-five low price to book value equities are: ANAT; GBLI; GNW; ISH; and VOYA.
My new featured Low Price to Book Value security is Global Indemnity, plc (GBLI) (recent price $25.61). GBLI meets Benjamin Graham's bargain stock value and safety criteria.
Global Indemnity, plc will be added to our nest egg at its market price in early morning trading on Monday, 4/7/14.
4/8/14-No assets among monitored portfolios have been sold since the last entry.
Taking advantage of market drops over the previous three trading sessions to add to our total equity book value, early this morning I bought additional shares of REGI and VOXX.
4/11/14-No assets among monitored portfolios have been sold since the last entry.
Alphabetically, my current top-five low price to book value equities are: ANAT; GBLI; GGB; ISH ; and REGI.
My new featured Low Price to Book Value security is Gerdau, S. A. (GGB) (recent price $6.16). GGB meets Benjamin Graham's bargain stock value and safety criteria.
Gerdau, S. A. will be added to our nest egg at its market price in early morning trading today 4/11/14.
I presently find the following assets attractive as Dividend Value stocks: BP; INTC; RGR; SUP; and TEO.
From among them I are choosing Telecom Argentina, S. A. (TEO) (recent price $18.99) as our current dividend value equity to feature. It meets Ben Graham bargain stock criteria and will be added as well to our nest egg at its market price in early trading today, 4/11/14.
4/16/14-No assets among monitored portfolios have been sold since the last entry.
Alphabetically, my current top-five low price to book value equities are: AGII; ANAT; NWLI; PRE; and SYA.
My new featured Low Price to Book Value security is Symetra Financial Corporation (SYA) (recent price $19.74). SYA meets Benjamin Graham's bargain stock value and safety criteria.
Symetra Financial Corporation will be added to our nest egg at its market price in early morning trading today, 4/16/14.
4/20/14-No assets among monitored portfolios have been sold since the last entry.
Alphabetically, my current top-five Dividend Value equities are: AP; CATO; KKR; PETS; and UVV.
My new featured Dividend Value security is PetMed Express, Inc. (PETS) (recent price $13.15). PETS meets Benjamin Graham's bargain stock value and safety criteria.
PetMed Express, Inc. will be added to our nest egg at its market price in early morning trading tomorrow, 4/21/14.
4/27/14-No assets among monitored portfolios have been sold since the last entry.
Alphabetically, my current top-five Low Price to Book Value equities are: AGII; ANAT; PRE; SYA; and TCK.
My new featured Low P/Bk security is Teck Resources, Ltd. (TCK) (recent price $22.48). TCK meets Benjamin Graham's bargain stock value and safety criteria.
Teck Resources, Ltd. will be added to our nest egg at its market price in early morning trading tomorrow, 4/28/14.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.