Review of Jon’s Portfolio

This portfolio started with $100,000 with $10 commission’s per trade. The structure follows Benjamin Graham’s approach of value investing. Taxes are ignored, and cash does not earn interest for ease of calculation.

This week I accepted a bad call on oil prices and sold my position in Harvest Energy Trust (HET) for a net realized loss of $862.00. I bet wrong on oil, and the losses began to lie outside my comfortable loss boundaries. This is an important lesson that I learned, and I followed my preaching from this weeks ValueInvesting Weekly and stuck to my investing criteria. Besides the sale, I did not execute any other transactions this week.

In time when the market is more attractive, I will be fully invested. There is not rush though as, proven from my experience, I would rather earn 0% on my money than a loss.

This weeks snapshot:

Ticker

Total Cost

Current Value

% Gain/Loss

AIG

$6,626.05

$6,980.40

5.35%

CHKE

$4,495.47

$4,389.88

-2.35%

KCP

$4,892.00

$4,990.00

2.00%

RSH

$5,996.45

$6,472.20

7.93%

SAFM

$6,292.00

$6,752.00

7.24%

TUES

$5,302.00

$5,716.00

7.81%

VBIIX

$10,170.00

$10,280.00

1.08%

 

 

 

 

Cash

 

$55,364.03

 

 

 

 

 

Total

$43,733.97

$100,944.51

4.12%

 

 

 

 

Performance

 

Weeks Change

Overall

DJIA

 

1.11%

4.40%

S&P 500

 

1.37%

5.03%

Portfolio

 

2.87%

4.12%

 *Net realized loss of $862.00 on sale of HET (9/26/06)

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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