Portfolios

Review of Defensive Low PE Portfolio

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).

We have decided to provide the list of Defensive Low PE stocks on a weekly basis.  The portfolio will continue to be rebalanced once a month, but the actual list will be posted every week.

Here is this week’s list of Defensive Low PE stocks:

 

SPF STANDARD PACIFIC
PHM PULTE HOMES, INC.
KBH KB HOME
MDC M.D.C. HOLDINGS, INC
LUK LEUCADIA NATIONAL
RYL RYLAND GROUP, INC
ASH ASHLAND INC
CFC COUNTRYWIDE  FINCL
DHI D.R. HORTON, INC.
LEN LENNAR CORP
TOL TOLL BROTHERS, INC.
RS RELIANCE STEEL
ORI OLD REPUBLIC INTL
FNF FIDELITY NAT’L FIN’L
CB CHUBB CORP (THE)

There were no transactions this week.  Next week we will rebalance the portfolio.

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

The snapshot:

Ticker

Total Cost

Current Value

% Gain/Loss

ASH $6,490.00 $6,457.00 -0.51%
BL $6,479.20 $6,885.00 6.26%
CFC $6,746.00 $6,978.00 3.44%
DHI $6,527.35 $7,749.00 18.72%
FAF $6,420.70 $7,296.40 13.64%
FNF $6,458.10 $7,129.80 10.40%
KBH $6,577.35 $6,996.70 6.38%
LEN $6,463.95 $6,662.37 3.07%
MDC $6,544.00 $7,096.50 8.44%
MTG $6,523.60 $7,213.20 10.57%
PHM $6,508.00 $7,391.25 13.57%
RYL $6,435.60 $7,088.00 10.14%
SPF $6,522.25 $6,825.75 4.65%
TMA $6,460.10 $6,988.49 8.18%
TOL $6,478.80 $7,415.20 14.45%
Cash   $2,961.00  
       
Total $100,000.00 $109,133.66 9.13%

Performance:

 

Last Week

This week

Change

Overall

S&P 1311.31 1339.15 2.12% 5.29%
Dow 11489.29 11718.45 1.99% 5.34%
Portfolio 105986.90 109133.66 2.97% 9.13%

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

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