Rebalance & Review of Defensive Low PE Portfolio

This week we performed our monthly rebalancing. 

This portfolio is made up of the 15 defensive stocks that are trading at the lowest PE Ratio.  The first week of each month we will review the list, and make any trades necessary to get the portfolio to match the list.  Every week we will examine the portfolio’s performance against the S&P 500 and Dow Jones Industrial Average, and reinvest any dividends.  The list of defensive stocks is made by following modernized Benjamin Graham strategies, and PE Ratio is calculated using an average of the previous 5 years’ earnings per share (EPS).

This week we sold Freddie Mac (FRE) at $63.13 for $6934.30, a gain of 9.4%.  We bought Countrywide Financial Corp (CFC) at $33.68 for $6746.00.

Finally, we reviewed the portfolio for any positions that had fallen below 6% of the total portfolio.  Since there were none this month, we made no further transactions.

This portfolio underperformed the Dow and S&P 500 indexes this week, and has slightly underperformed them overall.

The current value is calculated using prices near close from Thursday.

The snapshot:

Ticker

Total Cost

Current Value

% Gain/Loss

ASH $6,490.00 $6,087.00 -6.21%
BL $6,479.20 $6,480.00 0.01%
CFC $6,746.00 $6,736.00 -0.15%
DHI $6,527.35 $6,681.15 2.36%
FAF $6,420.70 $6,873.10 7.05%
FNF $6,458.10 $6,946.20 7.56%
KBH $6,577.35 $6,262.00 -4.79%
LEN $6,463.95 $6,294.17 -2.63%
MDC $6,544.00 $6,067.50 -7.28%
MTG $6,523.60 $6,940.80 6.40%
PHM $6,508.00 $6,482.25 -0.40%
RYL $6,435.60 $6,526.40 1.41%
SPF $6,522.25 $6,537.90 0.24%
TMA $6,460.10 $6,293.45 -2.58%
TOL $6,478.80 $6,731.40 3.90%
Cash   $2,961.00  
       
Total $100,000.00 $100,900.32 0.90%

Performance:

 

Last Week

This week

Change

Overall

S&P 1303.82 1294.02 -0.75% 1.75%
Dow 11381.15 11331.44 -0.44% 1.86%
Portfolio 103126.2 100900.3 -2.16% 0.90%

Neither of us holds a position in any of these stocks.  Please review our disclaimer and Our Methods.


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