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:

 

PIXR PIXAR
RCII RENT-A-CENTER, INC.
DEBS DEB SHOPS, INC
DLX DELUXE CORPORATION
HRB H&R BLOCK INC
PCU SOUTHERN COPPER CORP
NUE NUCOR CORPORATION
RYL RYLAND GROUP, INC
KCP COLE (KENNETH) PRODUCTS
MDC M.D.C. HOLDINGS INC
LIFE LIFELINE SYSTEMS INC.
LEN LENNAR CORP
OSG OVERSEAS SHIPHOLDING
EXPO EXPONENT, INC
LIZ LIZ CLAIBORNE, INC

There were a number of transactions this week because we updated our formulas.

The portfolio has outperformed both the DJIA and S&P 500 indexes during this period, and 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
DEBS $8,040.00 $8,031.00 -0.11%
DLX $7,948.80 $7,939.20 -0.12%
EXPO $8,030.10 $8,021.40 -0.11%
HRB $8,027.40 $8,017.20 -0.13%
KCP $7,995.90 $7,986.00 -0.12%
LEN $6,510.59 $7,691.81 18.14%
LIFE $7,887.00 $7,877.10 -0.13%
LIZ $7,601.90 $8,424.60 10.82%
MDC $7,406.29 $9,616.06 29.84%
NUE $7,884.00 $7,874.55 -0.12%
OSG $8,039.25 $8,029.80 -0.12%
PCU $8,101.80 $8,092.00 -0.12%
PIXR $8,132.40 $8,122.80 -0.12%
RCII $8,063.00 $8,052.00 -0.14%
RYL $6,454.10 $8,687.28 34.60%
Cash   $50.92  
Realized   $16,177.10  
       
Total $100,000.00 $122,513.72 22.51%

Performance:

  Last Week This week Change Overall
S&P 1389.08 1425.49 2.62% 12.08%
Dow 12163.66 12416.76 2.08% 11.62%
Portfolio 117071.05 122513.72 4.65% 22.51%

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

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