Review of Jon’s Portfolio

This portfolio follows Benjamin Graham’s value investing guidelines, with $100,000 initial seed capital and $10 commissions with taxes being ignored. Cash is not given any interest for ease of overall calculation.

This week I purchased quite a few stocks and also introduced a bond fund that meets my investing criteria. I am looking for a more aggressive investing mixture of bonds and stocks with a 10/90 split between the two. This 10% interest in bonds is merely a guide, not necessarily a mandatory requirement. I purchased the Vanguard Intermediate-Term Bond Index (VBIIX). This fund is a no-load fund and I am very satisfied with Vanguard management and track record. I purchased 1,000 shares at $10.16 for a total cost of $10,170.00.

I further purchased three stocks that I feel will perform nicely within my portfolio. These include Tuesday Morning Corporation (TUES) which deals as a closeout retailer of high end home goods. At the end of 2005 the company was operating 732 stores in 46 states producing sales of $922 million. The store sells their goods at 50%-80% below the prices generally sold at department stores. I purchased 400 shares at $13.23 for a total cost of $5,302.00.

Next Kenneth Cole Productions (KCP) was purchased, with 200 shares bought at $24.41 for a total cost of $4,892.00. Kenneth Cole produces upscale clothing, accessories, and footwear under various brand names closely tied to the Kenneth Cole name. They sell their products in over 6,000 department stores as well boutique stores operated by them.

Finally, Sanderson Farms (SAFM) which is a poultry production company producing under their brand name to grocery chains nationwide. They also are engaged in the frozen food market as well that, again, is branded under their name. I purchased 200 shares at $31.43 for a total cost of $6,292.00.

My existing portfolio has performed very randomly over the past week with some stocks producing sizeable gains, while others have performed poorly. The big winner this week is Radio Shack which produced a 3.12% gain this week alone. On the opposite side, Harvest Energy Trust has suffered greatly on declining oil prices, as it has posted a negative 10.10% return. However, I believe that the oil markets are experiencing a temporary correction, but see long term growth positive.

 

Ticker

Total Cost

Current Value

% Gain/Loss

AIG

$6,626.05

$6,825.00

3.00%

CHKE

$4,495.47

$4,199.91

-6.57%

HTE

$6,238.00

$5,608.00

-10.10%

KCP

$4,892.00

$4,882.00

-0.20%

RSH

$5,996.45

$6,318.10

5.36%

SAFM

$6,292.00

$6,286.00

-0.16%

TUES

$5,302.00

$5,292.00

-0.19%

VBIIX

$10,170.00

$10,160.00

-0.10%

 

 

 

 

CASH

 

$49,988.03

 

 

 

 

 

TOTAL

$50,011.97

$99,559.04

-0.89%

 

 

 

 

Performance

 

Weeks Change

Overall

S&P 500

 

-0.03%

3.20%

DJIA

 

0.24%

2.87%

Portfolio

 

-1.32%

-0.89%

 


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