This portfolio is made up of the 15 defensive stocks that are trading at the highest Return On Investment Capital (ROIC). 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 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 ROIC is calculated with a formula based on Warren Buffett’s definition of Owner Earnings and Contributed Capital.
We have decided to provide our list of Defensive High ROIC companies on a weekly basis. The portfolio will continue to be rebalanced once a month, but the list itself will be provided every week.
Here is this week’s list of Defensive High ROIC companies:
|RYL||RYLAND GROUP, INC|
|MDC||M.D.C. HOLDINGS, INC|
|LIZ||LIZ CLAIBORNE, INC.|
|TOL||TOLL BROTHERS, INC.|
|WEYS||WEYCO GROUP, INC.|
|PHM||PULTE HOMES, INC.|
|FL||FOOT LOCKER, INC|
|DHI||D.R. HORTON, INC.|
|JNY||JONES APPAREL GROUP|
There were two transactions this week as we rebalanced the portfolio. First, there was a $0.09 dividend on WEYS which was reinvested at $21.93. Then we sold Talbots Inc (TLB) for $8747.00 at a gain of about 29.25%. Finally, we purchased Liz Claiborne Inc. (LIZ) for $7602.40.
The portfolio underperformed both the DJIA and S&P 500 indexes this week, but has very significantly outperformed them overall.
The current value is calculated using prices near close from Thursday.