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Portfolios

Review of Defensive High ROIC Portfolio

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
LEN LENNAR CORP
LIZ LIZ CLAIBORNE, INC.
CAE CASCADE CORPORATION
TOL TOLL BROTHERS, INC.
BN BANTA CORP
WEYS WEYCO GROUP, INC.
PHM PULTE HOMES, INC.
FL FOOT LOCKER, INC
KBH KB HOME
DHI D.R. HORTON, INC.
RS RELIANCE STEEL
JNY JONES APPAREL GROUP
MAS MASCO CORP

There were no transactions this week.

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.

The snapshot:

Ticker

Total Cost

Current Value

% Gain/Loss

BN $6,450.00 $6,468.00 0.28%
CAE $6,470.20 $9,376.20 44.91%
DHI $6,527.35 $7,396.20 13.31%
FL $6,490.00 $6,264.00 -3.48%
JNY $6,544.00 $7,257.80 10.91%
KBH $6,577.35 $6,793.65 3.29%
LEN $6,436.95 $6,704.57 4.16%
LIZ $7,602.40 $7,786.20 2.42%
MAS $6,854.20 $7,119.60 3.87%
MDC $7,363.00 $8,367.40 13.64%
PHM $6,460.00 $6,867.10 6.30%
RS $6,870.65 $7,651.85 11.37%
RYL $6,435.60 $7,267.20 12.92%
TOL $6,478.80 $7,646.60 18.02%
WEYS $6,543.10 $7,730.20 18.14%
Cash   $3,865.95  
Realized   $4,048.10  
       
Total $100,000.00 $114,562.52 14.56%

Performance:

 

Last Week

This week

Change

Overall

S&P 1362.83 1366.96 0.30% 7.48%
Dow 11947.7 12011.73 0.54% 7.98%
Portfolio 117030.77 114562.52 -2.11% 14.56%

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

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