ModernGraham.com - A resource for Intelligent Investors

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided not to make any transactions.

The performance of Brookfield Homes (BHS), Dollar General (DG), First Data Corp (FDC), and Tuesday Morning Corp. (TUES) was encouraging, while a couple companies in the portfolio went down slightly.  Overall the portfolio has outperformed both the S&P 500 and the Dow.  This portfolio study was initiated on August 8, 2006.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 07:20 AM | Permalink | Comments (1) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided not to make any transactions.

The performance of First Data Corp (FDC), Intel Corp (INTC), and John H. Harland Co. (JH) was encouraging, while a couple companies in the portfolio went down slightly.  Overall the portfolio has outperformed both the S&P 500 and the Dow. In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.  When the portfolio is fully invested, I believe it will see greater gains as a whole.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 08:25 AM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided to purchase First Data Corp (FDC), our undervalued company of the week.  I bought 310 shares at $22.38. 

The performance of Quanex (NX), Tuesday Morning (TUES), and Westwood One (WON) was encouraging, while a couple companies in the portfolio went down slightly.  Overall the portfolio has outperformed both the S&P 500 and the Dow. In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.  When the portfolio is fully invested, I believe it will see greater gains as a whole.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 09:47 AM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided not to make any purchases. 

The performance of Brookfield Homes Corp (BHS), Marine Products Corp (MPX), and a few others was encouraging, and no companies in the portfolio went down.  Overall the portfolio has slightly outperformed both the S&P 500 and the Dow. In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.  When the portfolio is fully invested, I believe it will see greater gains as a whole.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 03:46 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided to purchase Quanex Corporation, our Undervalued Company of the week.  I purchased 250 shares at $29.25.  Also, McClatchy Company paid a dividend of $0.18/share, which I reinvested at $41.48.

The performance of Brookfield Homes Corp (BHS), Marine Products Corp (MPX), and Westwood One(WON) this week was very disappointing, while Intel Corp (INTC) and Tuesday Morning Corp (TUES) were up.  Overall the portfolio has slightly underperformed both the S&P 500 and the Dow. In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.  When the portfolio is fully invested, I believe it will see greater gains as a whole.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 04:12 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided not to make any transactions.  There is no need to rush into any positions. 

The performance of Brookfield Homes Corp (BHS), Marine Products Corp (MPX), and McClatchy Co (MNI) this week was very pleasing, while Dollar General (DG) was down slightly.  Overall the portfolio has slightly underperformed the S&P 500 and slightly outperformed the Dow. In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.  When the portfolio is fully invested, I believe it will see greater gains as a whole.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 05:44 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided not to make any transactions.  There is no need to rush into any positions. 

The performance of Dollar General (DG) and Tuesday Morning Corp (TUES) this week was very pleasing, while Intel (INTC - our Company of the Week) and Marine Products Corp (MPX) were both down slightly.  Overall the portfolio has slightly underperformed the Dow and the S&P 500. However, this week the portfolio outperformed both indexes.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.

This week's snapshot:

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 04:09 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided to invest more of the cash in equities.  After doing some research, I decided on four companies.  First, Brookfield Homes Corporation (BHS) has a very low PE ratio (5.4), high ROIC (16.10%), and a good value.  If it simply grows earnings by a miniscule 5% annually to perpetuity, it is worth $41.48.  John H. Harland Company (JH) and Tuesday Morning Corporation (TUES) also appeared attractive to me due to their high ROICs.  Finally, our Company of the Week this week, Westwood One, Inc. (WON) looks good as indicated by our article on Monday. 

The performance of Dollar General (DG)(up 6%) and Marine Products Corp (MPX)(up 3.5%) this week was very pleasing.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this week the portfolio outperformed both indexes.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.

This week's snapshot: 

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 04:31 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

This week I decided on the target allocation of assets for the portfolio.  I am going to aim for a 20/80 split between bonds and equities.  Every once in a while I will rebalance to regain this target.  In order to obtain my 20% in bonds, I purchased 2344 shares of Fidelity's Capital & Income Fund (FAGIX).  I selected this fund for its low expense rate (it is a no load), its manager's abilities, and the strategy it employs.  I believe that by purchasing a bond fund I will be diversified enough to focus on high-yield bonds. 

The performance of Intel (INTC) was very good this week yet again.  Marine Products Corp (MPX) and Dollar General (DG) were both up over 3% on the week, while McClatchy was up slightly.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this is likely because I have a lot of cash still sitting there.  I was encouraged this week by the fact that even though the portfolio is not fully invested, it was almost able to match the performance of the S&P 500 for the week.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.

This week's snapshot: 

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please register and discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 02:13 PM | Permalink | Comments (0) | TrackBacks (0)

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.  For ease of calculation, cash will not be given any interest.

There were no transactions this week.

The performance of Intel (INTC) was very good this week.  Marine Products Corp (MPX) and Dollar General (DG) were both down on the week, while McClatchy was up slightly.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this is likely because I have a lot of cash still sitting there.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.

This week's snapshot: 

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer and Our Methods.

Please discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 12:43 PM | Permalink | Comments (0) | TrackBacks (0)

This week I decided to buy more Dollar General (DG) in an effort to lower my average cost.  I bought 238 additional shares at $12.58/share.  I figure if I liked the company at $13.40, I like it even more at $12.58.

 I also bought McClatchy Company (MNI), our company of the week.  I bought 169 shares at $40.15.

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.

The performance of Intel (INTC) was marginally good this week.  Marine Products Corp (MPX) and Dollar General (DG) were both down on the week.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this is likely because I have a lot of cash still sitting there.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I'd rather have cash gaining 0% interest (and losing 0%) than own a company I don't have faith in.

This week's snapshot: 

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer.

Please discuss this portfolio in our forums.  Your comments help mold our future articles.

Posted by Ben at 01:58 PM | Permalink | Comments (1) | TrackBacks (0)

Well a week has gone by since I started this portfolio.  After considering buying a few stocks today, I have decided to leave the portfolio unchanged this week.  It still is only 3 stocks - very dangerous diversification level, but I just don't feel comfortable with any of the stocks I looked at today.  There is no reason to rush into purchases.

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.

The performance of the 3 stocks was pretty good this week.  They were all up.  Overall the portfolio outperformed the Dow, but not the S&P 500 this week.  I think that's pretty good, considering I only have about 20% of the funds invested - the rest are just sitting there doing nothing.

This week's snapshot: 

Posted by Ben at 02:01 PM | Permalink | Comments (0) | TrackBacks (0)

This is the first day of this portfolio's existence, so I researched a few different companies to decide what to purchase.  My goal is obviously to follow Benjamin Graham's strategy and only buy stocks that I believe to be undervalued and suitable for the enterprising investor - as that is what I am.  The portfolio will have a starting cash value of $100,000 and will face commissions of $10.  Taxes will be ignored.  I am aiming to hold between 10-15 stocks, limited to 1 or 2 per industry.

I looked at Marine Products Corp (MPX) first, which was our company of the week this week. The attractive part of this company was its value, a low PE, high ROIC, and I like their strategy and believe the company will continue to grow into the future.  I "purchased" 765 shares at $8.50 with a $10 commission for a total cost of $6,512.50.

Next, I looked at Dollar General Corporation (DG).  The company has a low PE, high ROIC, and is undervalued by my calculations (seeing a trend here?).  I "purchased" 485 shares at $13.40 with a $10 commission for a total cost of $6,509.00.

Finally, I looked at Intel Corporation (INTC).  Once again, the company has a low PE, high ROIC, and is undervalued.  375 shares at $17.36 with a $10 commission for a total cost of $6,520.00.

Here is a snapshot of the portfolio today:

Posted by Ben at 02:13 PM | Permalink | Comments (0) | TrackBacks (0)