Review of Ben’s Portfolio

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: