New Portfolio

Since it is beginning of the year, I am creating a new 28 stock portfolio for tracking. The following are the rules we follow:

1. Equally divide $100,000 among the 28 stocks. Then, substract $14 (transaction fees for buying and selling) to get the amount you can use for buying any individual stocks in the portfolio.

2. The amount of stocks for each security will be adjusted to the nearest whole number. For example, if the number of stocks you can purchase on a security based on the first rule is 10.3256, buy only 10 shares. This way, it is easy to track.

3. We will re-balance this portfolio every quarter. My study showed that rebalance in general helps to increase the overall return.

4. For tracking purposes, I will use the highest price of the security on Jan 2 (the first trading day of 2018).

5. During rebalance, I will use the lowest price while selling and highest price while buying for that day.

Here are the new 28 companies.


Year in Review

Happy New Year to all my readers!

When we look back to 2017, first thing we want to see is how the MonkeyMoney Portfolio performed compared to S&P 500. Beating S&P 500 was the goal of this portfolio and we did that in 2017. We returned 19.58% compared to S&P 500 return of 14.79% during the same time. Though, we beat the market by around 5% which would be around $5,000 if you have a portfolio of $100,000, I would like to see better return, possibly twice or thrice of S&P 500 return.

So, I went back to my research and tried to see what would have happened if I did not evaluate these stocks on a weekly basis. The result was surprising to me. If I did not make these changes on a weekly basis, the portfolio I started on March 27, 2017 (without adjusting the original stocks), it returned 23.94%, around 9% more than S&P 500. So, we will come up with a new portfolio without making any weekly changes.

I also have a portfolio of 13 stocks that I do not publish which returned 30.26% more than double of S&P 500. Wow! If you are interested in this portfolio, let me know by commenting this article.

The following are the top 10 winners in our portfolio:

Company Ticker Return
Control4 Corp CTRL 68.99%
TAL Education Group… TAL 59.25%
NVIDIA Corporation NVDA 48.76%
Paypal Holdings Inc PYPL 48.29%
Autohome Inc (ADR) ATHM 31.13%
New Oriental Education… EDU 30.65%
China Lodging Group… HTHT 23.81%
Alibaba Group Holding… BABA 23.42%
Cboe Global Markets Inc CBOE 22.22%
Align Technology, Inc. ALGN 22.09%

The following are the top 10 losers in our portfolio:

Company Ticker Return
MACOM Tech. Solutions… MTSI -26.06%
TTM Technologies, Inc. TTMI -25.52%
KEMET Corporation KEM -20.83%
AlarmCom Hldg Inc ALRM -17.14%
Lumentum Holdings Inc LITE -16.55%
National Beverage Corp. FIZZ -12.54%
Hasbro, Inc. HAS -11.74%
SINA Corp SINA -10.62%
NutriSystem Inc. NTRI -7.65%
Intuitive Surgical, Inc. ISRG -7.32%

No change in Portfolio

We will not make any changes to the portfolio next week.

As you are probably aware of, technology shares rebounded slightly. But, those rebounds did not reflect in our portfolio. My belief is that ultimately our portfolio will catch up. We are still far better than S&P 500 since Match 2017.

Portfolio Status and Other Thoughts

We are not making any changes to the portfolio this week.

Last week I did not update my readers. My apologies. Main reason for that is that I track portfolios through Google Finance. Google announced that it will discontinue the portfolio feature middle of Nov 2017. The changed their finance site and it was nowhere useful and they removed the portfolio feature. We are not happy with this and I am hoping they will change their decision and keep the portfolio. So, that is the reason I did not update because the lack of portfolio tracking disturbed me.

The portfolio took some big losses recently due to selloff in tech shares. We lost around 7% in the last 2 weeks. If you have started the portfolio 2 weeks ago, you would have lost around 7% while S&P 500 was up during the same time period. You will panic. Though I cannot foresee future, my experiments in last years showed that if you have a longer timeframe, the portfolio will beat S&P 500.

So, do not panic, have a long term perspective.

Current Portfolio

Company Name Symbol Last price Shares Cost basis Mkt value Gain Overall return
Control4 Corp CTRL 33.08 199.72 3,517.09 6,606.74 3,089.65 87.85%
Square Inc SQ 44.18 124 4,453.20 5,478.32 1,025.12 23.02%
Fox Factory Holding Corp FOXF 37.35 104 3,742.40 3,884.40 142 2.13%
Cadence Design Systems… CDNS 44.58 94 3,754.26 4,190.52 436.26 11.62%
Mercury Systems Inc MRCY 50.68 88 3,739.04 4,459.84 720.8 8.89%
AlarmCom Hldg Inc ALRM 44.2 82 3,735.98 3,624.40 -111.58 -2.99%
Applied Materials, Inc. AMAT 56.49 80 3,748.40 4,519.20 770.8 13.98%
Chemours Co CC 52.5 74 3,769.50 3,885.00 115.5 1.13%
Paypal Holdings Inc PYPL 76.38 71.85 3,566.98 5,487.90 1,920.92 53.85%
New Oriental Education… EDU 89.29 48.88 3,516.74 4,364.50 847.75 24.11%
Centene Corp CNC 95.14 44 3,742.12 4,186.16 444.04 7.58%
Paycom Software Inc PAYC 81.99 44 3,437.20 3,607.56 170.36 15.45%
Cboe Global Markets Inc CBOE 116.48 42 3,650.36 4,892.16 1,241.80 17.47%
China Lodging Group… HTHT 124.63 37 4,316.25 4,611.31 295.06 6.84%
Red Hat Inc RHT 125.95 37 4,470.28 4,660.15 189.87 4.25%
VMware, Inc. VMW 123.26 34 3,728.16 4,190.84 462.68 7.09%
Cognex Corporation CGNX 140.52 34 3,777.46 4,777.68 1,000.22 17.19%
Msci Inc MSCI 126.58 32 3,777.84 4,050.56 272.72 7.22%
Analog Devices, Inc. ADI 90.42 32 2,960.56 2,893.44 -67.12 -2.27%
NVIDIA Corporation NVDA 211.36 27.04 3,517.30 5,715.17 2,197.87 62.49%
Alibaba Group Holding… BABA 185.13 26.724487 3,104.15 4,947.50 1,843.35 28.50%
Visa Inc V 109.82 26 2,932.50 2,855.32 -77.18 -2.63%
Mastercard Inc MA 149.02 25 3,342.75 3,725.50 382.75 11.45%
Lam Research Corporation LRCX 210.47 24 3,800.72 5,051.28 1,250.56 23.16%
Align Technology, Inc. ALGN 253.89 23 3,662.49 5,839.47 2,176.98 28.83%
Arista Networks Inc ANET 233.82 20 3,814.00 4,676.40 862.4 11.50%
CIGNA Corporation CI 197.97 20 3,768.20 3,959.40 191.2 5.07%
IPG Photonics Corporatio… IPGP 237.23 20 3,716.20 4,744.60 1,028.40 27.67%
Portfolio value: $126,294.55 26.29%

Portfolio gained 2.47% Today!

During the initial years of my investing education, I used to pick individual stocks. If I get 2% gain in few stocks, I was happy. But, it is amazing to see the portfolio of 28 stocks provided an average return of 2.47% in one day. Overall, the portfolio returned 26.44% in 7 and 1/2 months! Yes, we should be happy..More than twice the S&P 500 return during the same time..

No Change in Portfolio

We will not make any changes to the portfolio this week.

Last week has been ups and downs for our portfolio, but, still performed better than S&P 500. ALRM shares went down more than 10% even though they beat the analyst estimates. This can happen if some investors are following ‘sell on good news’. We believe the stock will come back up. Only time will tell if our belief is correct.

NVDA rose more than 5% after it beat earnings. Chip sector is hot these days mainly driven by the demands for the chips in emerging technologies like AI (Artificial Intelligence), VR (Virtual Reality), Data Centers (driven by cloud computing and internet), Driverless Automobile etc. I remember reading more than 15 years ago, when the founder of NVDA saying that GPU should be the main component of PCs and CPU etc should be after that (do not remember exact wordings, but, in essence that is what I read). That statement is becoming more true now a days.

Happy investing!

Hit an Miss..Earnings Continue..

Last week, many of the portfolio companies reported earnings..notable winners are ANET and CTL.  Losers include KEM and CORT. KEM and CORT nullified any gains we obtained from other winners last week. We reported that we will watch if the rumor about CORT’s sales is true. It appears that it is not. They had good sales, but, missed on earnings target. That is why they tanked.