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.