Rebalance & Review of Defensive Value Portfolio

This week we performed our monthly rebalancing. 

This portfolio is made up of the 15 defensive stocks that are trading at the greatest discount to their intrinsic value.  During the first week of each month we will review the list, and make any trades necessary to get the portfolio to match the list.  Each 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 intrinsic value is calculated by a formula based on Graham’s overall philosophy of calculating value with a margin of safety. 

This week we sold Popular Inc (BPOP) at $19.01 for $6738.55, a gain of 3.6%.  We sold Chubb Corp. (CB) at $49.88 for $6723.80, a gain of 4.7%.  Finally we sold New York Times Co. (NYT) at $22.26 for $6556.70, a gain of 0.3%.

Then we bought Thornburg Mortgage Inc. (TMA) at $23.09 for $6475.20, KB Home (KBH) at $40.40 for $6474.00, and Mercury General Corp (MCY) at $49.49 for $6443.70.

Finally, we reviewed the portfolio to see if any positions had fallen below 6% of the entire portfolio.  Since none had, we made no further transactions.

This portfolio underperformed both the Dow and the S&P 500 indexes this week, and has 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%
BC $6,427.00 $6,500.25 1.14%
BL $6,479.20 $6,480.00 0.01%
DHI $6,527.35 $6,681.15 2.36%
KBH $6,474.00 $6,464.00 -0.15%
LEN $6,463.95 $6,294.17 -2.63%
LUK $6,505.40 $6,117.05 -5.97%
MCY $6,443.70 $6,433.70 -0.16%
MDC $6,544.00 $6,067.50 -7.28%
MNI $6,422.50 $6,115.50 -4.78%
NFB $6,524.20 $6,471.35 -0.81%
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 $6,475.20 $6,465.20 -0.15%
Cash   $3,315.00  
       
Total $100,000.00 $99,038.42 -0.96%

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 100859.2 99038.42 -1.81% -0.96%

 

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


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