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November, 2020: 14 26
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. |
11/14/20-Since the prior entry (10/7/20), there have been several buys and sales in our basic 25 holdings. These were redeemed in full: ASB; BPOP; FHI; FRME; FSLY; MCBC; OKTA; RCII; SCS; and TSBK. The following were purchased to replace them: DOCU; MCY; NET; PDM; PEY; SCHD; SPTN; TRTN; VDE; and XLE. The 25-list thus now includes: AWF; BHK; CRWD; CVS; DDOG; DOCU; IBCP; MCY; MET; NET; PDM; PEY; PFBI; PFG; RSP; SCHD; SPTN; TRTN; VBF; VCIT; VDE; VIOO; VMFXX; XLE; and ZM.
Portfolio assets now assure annual total dividend income of over $50,000, achieving a 2020 goal.
Since 10/7/20, liquid assets are up $59,229 or 3.67% and now total $1,671,712. For better or worse, bond assets plus reserves have been reduced to 21% of overall liquid holdings.
Net total assets (including real estate and all other holdings) are up 4.38% since the end of 2019, a gain this year of $83,429. Our nest egg stands at $1,986,862.
Observations: While the nest egg's value is over three times its level when I began this blog (on 3/2/02, a few months after I had retired, with an initial total assets value of $600,000), I have fairly consistently played it conservatively, usually having about a third of liquid holdings invested in bond or money market assets. A not insignificant part of the nest egg has been our residence (real estate). It has accumulated in value at only a modest rate. Also, many of the other holdings have been of the value type. These have largely underperformed the market for a number of years now. Our overall cumulative total return has averaged just 6.58% a year.
Given that we have, though, this financial cushion as well as retirement income and considering that my wife is younger than I, in future I expect to be a little more risk-taking. The above cited basic 25 assets also reflect another change: am gradually switching from individual securities to more exchange traded funds, index funds, and the like. Mostly, they have a lower propensity to go down wildly in a bear market and yet often show better returns. Am not going crazy with this new approach, but, after this bizarre year, expect to target simply an 8% average return from here on out.
11/26/20-Since the prior entry (11/14/20), there have been a few more buys and sales among our basic 25 holdings. These were redeemed: CVS; MET; SPTN; and VMFXX. Shares in these were added in their place: CDNS; DHT; FBND; and PAYC. The 25-list thus now includes: AWF; BHK; CDNS; CRWD; DDOG; DHT; DOCU; FBND; IBCP; MCY; NET; PAYC; PDM; PEY; PFBI; PFG; RSP; SCHD; TRTN; VBF; VCIT; VDE; VIOO; XLE; and ZM.
Portfolio assets provide yearly total dividend income of over $50,000. This is to be raised to at least $54,000 by the end of 2021.
Since 11/14/20, liquid assets are up $116,403 or 6.96% and now total $1,788,115. With the increase, some equities have been sold off to reduce overall risk, and the portfolio portion of bond assets plus reserves has thus been raised to at least 30%.
Net total assets (including real estate and all other holdings) are up 10.51% since the end of last year, a gain so far in 2020 of $199,972. Our nest egg stands at $2,103,405. Since the lows last spring, the total has risen $403,823. This development will hopefully be a lesson for me about panicking when there is a sudden slump in our holdings' market value. Clearly, that is not a good time to sell. With a little patience, much that was lost, and maybe a bit extra besides, can be retrieved or added.
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.