Review of Jon’s Portfolio

Again, to review the structure of our model portfolios: $100,000 initial cash balance with $10 per trade commission cost. Taxes will be ignored for this simulation. My goal is to follow Benjamin Graham’s model of an enterprising investor with a modern twist that allows for moderate flexibility.

This week I acquired another equity position in Harvest Energy Trust (HET). This is a Canadian energy trust that deals with oil and natural gas reserves. The company strives to increase cash flow per unit through acquiring, producing and enhancing crude oil and natural gasses. The company primarily produces in Western Canada, producing 60,000 barrels of oil daily. I feel this company suits my portfolio nicely as I am without any energy stocks. I feel that energy will continue (in the long term) to increase in demand as supply shrinks. I love the dividend and Return on Equity yields produced at 13.10 and 12.18 respectfully.

As far as the existing stocks in the portfolio Cherokee has performed the worst, struggling as it has lost -2.40% overall since date of purchase. Radio Shack has performed nicely attaining a gain of 2.24% since date of purchase. My portfolio is still only 25% invested and I am still attempting to determine my preference of bond to equity position. I still have a large cash balance, but am not going to be buying stock just for the sake of lowering my cash reserve. I am under performing the indices, but still feel strongly that my selection will in time turn into a more profitable portfolio.  

Ticker

Total Cost
Current Value
% Gain/Loss
AIG

 

$6,626.05

 

$6,744.15

 

1.78%
CHKE $4,495.47

 

$4,387.46 -2.40%
RSH $5,996.45 $6,130.50 2.24%
HTE $6,238.00 $6,228.00 -0.16%

 

 

 

 

CASH

 

$76,654.03

 

Total $23,355.97 $100,144.14

0.57%

 

 

 

 

Performance

 

Weeks Change
Overall
S&P 500

 

0.90% 3.23%
DJIA

 

1.05% 2.62%
Portfolio

 

0.52% 0.57%

 

Please discuss this and all postings in our forum. We appreciate all input!

 

 


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