Review of Defensive Value 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 |
| NI | NISOURCE INC |
| STFC | STATE AUTO FINANCIAL |
| ATG | AGL RESOURCES INC |
| NFB | NORTH FORK BANCORP |
| PGR | PROGRESSIVE CORP |
| ZION | ZIONS BANCORPORATION |
| MNI | MCCLATCHY COMPANY |
| CNB | COLONIAL BANCGROUP |
| VLO | VALERO ENERGY CORP |
| TMA | THORNBURG MORTGAGE |
| TOA | TECHNICAL OLYMPIC |
| BBT | BB&T CORPORATION |
| BAC | BANK OF AMERICA CORP |
| WPS | WPS RESOURCES CORP |
This week there were a few transactions. LEN paid a dividend on 11/15 for $0.16, which was reinvested at $48.95. MDC paid a dividend on 11/21 for $0.25, reinvested at $55.25. SPF paid a dividend of $0.04 on 11/22, reinvested at $24.21. CFC paid a dividend of $0.15 on 11/30, reinvested at $39.72.
In addition, there were a number of buys and sells as we tweaked our formulas.
This portfolio outperformed the indexes during the period and has outperformed them overall.
The snapshot:
| Ticker | Total Cost | Current Value | % Gain/Loss |
| ASH | $7,532.90 | $7,918.90 | 5.12% |
| ATG | $7,693.00 | $7,683.00 | -0.13% |
| BAC | $7,719.65 | $7,709.65 | -0.13% |
| BBT | $7,738.00 | $7,728.00 | -0.13% |
| CNB | $7,782.80 | $7,772.80 | -0.13% |
| MNI | $7,809.60 | $7,799.60 | -0.13% |
| NFB | $7,729.25 | $7,719.25 | -0.13% |
| NI | $7,862.80 | $7,852.80 | -0.13% |
| PGR | $7,777.50 | $7,767.50 | -0.13% |
| STFC | $7,738.75 | $7,728.75 | -0.13% |
| TMA | $7,796.65 | $7,786.65 | -0.13% |
| TOA | $7,810.45 | $7,800.45 | -0.13% |
| VLO | $7,703.00 | $7,693.00 | -0.13% |
| WPS | $7,732.70 | $7,722.70 | -0.13% |
| ZION | $7,727.80 | $7,717.80 | -0.13% |
| Cash | $785.43 | ||
| Realized | $16,940.28 | ||
| Total | $100,000.00 | $117,186.28 | 17.19% |
Performance:
| 10/27/06 | 12/15/06 | Change | Overall | |
| S&P | 1389.08 | 1425.49 | 2.62% | 12.08% |
| Dow | 12163.66 | 12416.76 | 2.08% | 11.62% |
| Portfolio | 111571.17 | 117186.28 | 5.03% | 17.19% |
Neither of us holds a position in any of these stocks. Please review our disclaimer and Our Methods.
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