Review of Ben’s Portfolio

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: 

Ticker

Total Cost

Current Value

%Gain/Loss

DG $9,514.68 $9,145.95 -3.88%
FAGIX $20,004.32 $19,994.32 -0.05%
INTC $6,795.49 $7,470.00 14.55%
MNI $6,510.15 $6,874.92 1.17%
MPX 6510.15 6831.45 4.94%
       
Cash   $50,654.79  
       
Total $49,334.79 $100,971.43 0.97%
       
Performance  

Week’s Change:

Overall:

S&P 500   0.90% 3.23%
Dow Industrials   1.05% 2.62%
Portfolio   0.70% 0.97%

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.

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