Review of Ben’s Portfolio

This week I decided to buy more Dollar General (DG) in an effort to lower my average cost.  I bought 238 additional shares at $12.58/share.  I figure if I liked the company at $13.40, I like it even more at $12.58.

 I also bought McClatchy Company (MNI), our company of the week.  I bought 169 shares at $40.15.

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.

The performance of Intel (INTC) was marginally good this week.  Marine Products Corp (MPX) and Dollar General (DG) were both down on the week.  Overall the portfolio has underperformed the Dow and the S&P 500. However, this is likely because I have a lot of cash still sitting there.  In the weeks ahead I plan on investing the rest of the cash, but if I do not find companies I would like to invest in, there is no need to.  I’d rather have cash gaining 0% interest (and losing 0%) than own a company I don’t have faith in.

This week’s snapshot: 

Ticker Total Cost Current Value %Gain/Loss
DG $9,514.68 $9,095.34 -4.39%
INTC $6,521.25 $6,877.50 5.48%
MNI $6,795.49 $6,778.59 -0.25%
MPX $6,510.15 $6,601.95 1.37%
       
       
Cash   $70,659.11  
       
Total $29,341.57 $100,012.49 0.01%
       
Performance   Week’s Change: Overall:
S&P 500   1.07% 2.12%
Dow Industrials   1.01% 1.49%
Portfolio   -0.50% 0.01%

Neither of us held a position in any of the companies mentioned at the time of publication.  Also, please review our disclaimer.

Please discuss this portfolio in our forums.  Your comments help mold our future articles.

Review of Ben’s Portfolio

Well a week has gone by since I started this portfolio.  After considering buying a few stocks today, I have decided to leave the portfolio unchanged this week.  It still is only 3 stocks – very dangerous diversification level, but I just don’t feel comfortable with any of the stocks I looked at today.  There is no reason to rush into purchases.

This portfolio will follow our modernized Benjamin Graham value investing approach, starting with $100,000 and $10 commissions.  Taxes are ignored.

The performance of the 3 stocks was pretty good this week.  They were all up.  Overall the portfolio outperformed the Dow, but not the S&P 500 this week.  I think that’s pretty good, considering I only have about 20% of the funds invested – the rest are just sitting there doing nothing.

This week’s snapshot: 

Ticker

Total Cost

Current Value

%Gain/Loss

DG $6,508.70 $6,620.25 1.71%
INTC $6,521.25 $6,806.25 4.37%
MPX $6,510.15 $6,709.05 3.06%
       
       
       
Cash   $80,458.50  
       
Total $19,540.10 $100,594.05 0.59%
       
Index Performance     Week’s Change
S&P 500     1.04%
Dow Industrials     0.47%

Review of Ben’s Portfolio

This is the first day of this portfolio’s existence, so I researched a few different companies to decide what to purchase.  My goal is obviously to follow Benjamin Graham’s strategy and only buy stocks that I believe to be undervalued and suitable for the enterprising investor – as that is what I am.  The portfolio will have a starting cash value of $100,000 and will face commissions of $10.  Taxes will be ignored.  I am aiming to hold between 10-15 stocks, limited to 1 or 2 per industry.

I looked at Marine Products Corp (MPX) first, which was our company of the week this week. The attractive part of this company was its value, a low PE, high ROIC, and I like their strategy and believe the company will continue to grow into the future.  I “purchased” 765 shares at $8.50 with a $10 commission for a total cost of $6,512.50.

Next, I looked at Dollar General Corporation (DG).  The company has a low PE, high ROIC, and is undervalued by my calculations (seeing a trend here?).  I “purchased” 485 shares at $13.40 with a $10 commission for a total cost of $6,509.00.

Finally, I looked at Intel Corporation (INTC).  Once again, the company has a low PE, high ROIC, and is undervalued.  375 shares at $17.36 with a $10 commission for a total cost of $6,520.00.

Here is a snapshot of the portfolio today:

Ticker Total Cost

Current Value

%Gain/Loss

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