Review of Defensive Value Portfolio

This week we rebalanced the portfolio. 

This portfolio is made up of the 15 defensive stocks that are trading at the greatest discount to their intrinsic value.  During the first week of each month we will review the list, and make any trades necessary to get the portfolio to match the list.  Each 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 intrinsic value is calculated by a formula based on Graham’s overall philosophy of calculating value with a margin of safety. 

We have decided to provide the list of defensive value stocks on a weekly basis.  The portfolio itself will continue to be rebalanced once a month, but the list of stocks will be updated every week.

Here is this week’s list of defensive value stocks:

 

ASH ASHLAND INC
LUK LEUCADIA NATIONAL
MDC M.D.C. HOLDINGS, INC
BL BLAIR CORPORATION
CB CHUBB CORP (THE)
SPF STANDARD PACIFIC
RYL RYLAND GROUP, INC
PHM PULTE HOMES, INC.
LEN LENNAR CORP
CFC COUNTRYWIDE  FINCL
WSC WESCO FINANCIAL CORP
RS RELIANCE STEEL
BC BRUNSWICK CORP
MCY MERCURY GENERAL CORP
DHI D.R. HORTON, INC.

This week there were a number of transactions.  We sold KB Home (KBH) for $6999.60 at a gain of about 8.25%, McClatchy Co (MNI) for $6347.47 (after a $0.18 dividend was reinvested earlier in the week at $41.48) at a loss of about 1.5%, North Fork Bancorp (NFB) for $6819.42 at a gain of about 3.5%, and Thornburg Mortgage for $7387.60 at a gain of about 14%.

We purchased Chubb Corp (CB) for $7217.65, Countrywide Financial Corp (CFC) for $7137.25, Wesco Financial Corp (WSC) for $7155.50, and Reliance Steel & Aluminum (RS) for $7245.80.

This portfolio underperformed the indexes this week, but has outperformed them overall.

The snapshot:

Ticker

Total Cost

Current Value

% Gain/Loss

ASH $6,490.00 $6,363.00 -1.96%
BC $6,427.00 $7,166.25 11.50%
BL $6,479.20 $7,379.10 13.89%
CB $7,217.65 $7,207.65 -0.14%
CFC $7,137.25 $7,127.25 -0.14%
DHI $6,527.35 $7,515.90 15.14%
LEN $6,463.95 $6,641.99 2.75%
LUK $6,505.40 $6,300.35 -3.15%
MCY $6,443.70 $6,910.80 7.25%
MDC $6,544.00 $7,296.00 11.49%
PHM $6,508.00 $7,218.00 10.91%
RS $7,245.80 $7,235.80 -0.14%
RYL $6,435.60 $6,969.60 8.30%
SPF $6,522.25 $7,090.80 8.72%
WSC $7,155.50 $7,145.50 -0.14%
Cash   $2,112.88  
Realized   $2,238.73  
       
Total $100,000.00 $107,680.87 7.68%

Performance:

 

Last Week

This week

Change

Overall

S&P 1339.15 1353.22 1.05% 6.40%
Dow 11718.45 11866.69 1.27% 6.67%
Portfolio 106800.36 107680.87 0.82% 7.68%

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


Posted

in

by

Tags: