Matthew Waterman
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Matthew Waterman in Brand Power,

Here's How My Readers Are Doing So Far This Year

It's good to benchmark yourself from time to time to see how you're doing against the indexes. I first started posting blogs here in November of 2015, and while I'm not able to purchase shares of every company that I'm bullish on, I do follow a philosophy of sticking to profitable companies and cost averaging when I'm down. As it so happens, I had started a new brokerage account at almost the same time that I started writing here, so I am able to provide performance here that's in line with what people who read my entries can expect. 

So, my six month performance is 9.64% according to my brokerage. The S&P is at 7.28% over the same timeframe. I will refrain from saying exactly how much is in the account, but I do make regular contributions. If your primary income source is work, assume that I invest every two weeks into something. The percentages here were interesting to me, because only a little over a month ago, a good 2/3rds of this portfolio was in negative percentages. I tend to aggressively purchase the stocks that I'm down the most on in order to lower my average cost. At the point where the trend reverses to positive, I will just let it run.

The portfolio is hedged at 20% bonds using the Vanguard Total Bond Market ETF (BND). My largest non-bond holding is Mattel (MAT), representing a little more than 8% of assets, with Navios Maritime Partners (NMM) taking up almost as large of a position. Bank of America (BAC) and Wells Fargo (WFC) about 6% each. Oil companies occupy about 10% overall, with Enterprise Products Partners (EPD) taking up about 1,5x as much as any other oil holding. The rest is scattered in various large caps and small holdings in income investments. The high-yield investments like the Pimco High Income Fund (PHK) and Prospect Capital (PSEC) take up about 5% together.

I'm not precisely sure at this moment what my dividend yield is, but it should be higher than the S&P average since nearly everything I buy is above it. When I do this update again at year end I'll try to have that worked out.

It remains to be seen how I do as time passes from this point, but now visitors to the site can get a better understanding of what they can expect, since I actually make it a point to talk about things I own as much as possible. There might be a tick or two that I haven't talked about yet in here, I don't think I've covered Paychex (PAYX) yet, but I would rate everything in my portfolio a buy with the exception of bonds being limited to the allocation that you prefer.