The 3Q2009 can be summarized as quarter of recovery. In my post SENSEX trends, I looked at quarterly earnings and profitability which showed signs of positive growth. It still remains to be seen whether this growth is sustainable and how long it is going to continue.
It is important for all do-it-yourself investors to make sure they are monitoring their portfolio and keep tracking of progress. Last progress update was for 1H2009 and was discussed in early June 2009. This post summarizes TIPBlog portfolio update and shows progress.
The status or update is as follows:
- Projected dividend cash flow was Rs 11,801 (increased from Rs 10,701 in 1H2009);
- Yield on original investments (YOC) is 4.90% (increased from 4.7% in 1H2009);
- Year-to-Date portfolio value increased by 57.6%;
- Life-to-Date portfolio value is at 330% on cost basis; and
- The portfolio has 11 stocks.
Following is the summary of changes that I made during 3Q2009:
- Initiated starter positions (i.e. new purchase) in Hawkins Cookers Ltd.
- Sold my position in GE Shipping. When I had bought this stock early this year, I had not done my due diligence and bought it for two reasons (a) for low PE ratio; and (2) high dividends. In addition, as I had mentioned in risk analysis for 1H09, lack of watch list or buy list also had a role to play. I completed my analysis and realized it does not meet my criteria for buy a stock. This is explained in my post on GE Shipping stock analysis.
With respect to my year 2009 portfolio goals, I have following updates:
- I have reached the projected dividend cash flow of Rs. 11,801 (against my Year 2009 goal of Rs. 15,000). It remains to be seen whether I will achieve my year end goal.
- To bring portfolio diversification to pre-determined risk level. Summary is; I have not yet reached this goal, and most likely I am going to miss it. I will discuss this in upcoming articles about risk analysis and portfolio re-balancing.
In addition, I have spent quite a bit of time trying to understand index investing and how I want to configure my portfolio. The update is:
- I have initiated a very small position in NIFTY index ETF; and
- I have not yet made any concrete conclusion on how I should go about it. The reason being there are not many choices available. I have ruled out index based mutual funds. Based on my personal preferences and abilities, I am not ready to pay some nut job mutual fund manager operational expenses for nothing.
In continuation to this update, I will also post two articles discussing risk analysis and re-balancing.
Hawkins, progress update, SENSEX trends, TIPBlog, yield of cost, YOC