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 to invest more of the cash in equities.  After doing some research, I decided on four companies.  First, Brookfield Homes Corporation (BHS) has a very low PE ratio (5.4), high ROIC (16.10%), and a good value.  If it simply grows earnings by a miniscule 5% annually to perpetuity, it is worth $41.48.  John H. Harland Company (JH) and Tuesday Morning Corporation (TUES) also appeared attractive to me due to their high ROICs.  Finally, our Company of the Week this week, Westwood One, Inc. (WON) looks good as indicated by our article on Monday. 

The performance of Dollar General (DG)(up 6%) and Marine Products Corp (MPX)(up 3.5%) this week was very pleasing.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this week the portfolio outperformed both indexes.  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

BHS $6,502.50 $6,492.50 -0.15%
DG $9,514.68 $9,709.89 2.05%
FAGIX $20,004.32 $20,017.76 0.07%
INTC $6,795.49 $7,406.25 8.99%
JH $7,496.00 $7,486.00 -0.13%
MNI $6,510.15 $6,643.39 2.05%
MPX $6,510.15 $7,053.30 8.34%
TUES $6,625.00 $6,615.00 -0.15%
WON $7,250.00 $7,240.00 -0.14%
       
Cash   $22,781.29  
       
Total $77,208.29 $101,445.38 1.45%
       
Performance  

Week’s Change:

Overall:

S&P 500   -0.03% 3.20%
Dow Industrials   0.24% 2.87%
Portfolio   0.47% 1.45%

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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