(Month 5) – Up 12% – TAM Deep Value Stock Portfolio

Johnny HopkinsTAM Deep Value Stock Portfolio Comments

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Firstly, sorry about the delay in getting this month’s update to you.

Today is the end of month five of The Acquirer’s Multiple $45,000 – Deep Value Stock Portfolio – Real Money Game, and the portfolio is up 12% since inception.

The Deep Value Stock Portfolio – Real Money Game means I’m investing my entire superannuation valued at $45,000 into a real life Acquirer’s Multiple Portfolio and documenting it here.

The plan is to build my portfolio over the next twelve months and ongoing. After twelve months I’ll have thirty stocks equally weighted in the portfolio, then I’ll re-balance each position after one year and one day to minimize tax.

Month Five

Stocks include:

Here’s what the headings mean:

Company: Company name

Ticker: Stock symbol

BUY$: Starting price for each position

Date: Date purchased

Qty: Number of shares purchased

SV: Starting Value. The total amount paid for each position

CP: Current price for each position

CV: Current total value for each position

% Diff: The difference between the starting price and the current price by percentage

$ Diff: The difference between the starting price and the current price in dollars

Investor’s Thoughts

After five months the portfolio is clearly in a slight draw-down this month. This is always the case around earnings time when stocks tend to get punished for short-term underperformance. It’s important at times like this that you don’t abandon your strategy and/or sell your under-performing stocks. Ignore the crowd and their short-term vision and stick with your evidence based investment strategy.

I’m starting to see some real diversification now with twelve stocks in the portfolio. In terms of picking stocks from the Stock Screener here at The Acquirer’s Multiple, one mistake that investors make is trying to pick the best (in their opinion) stocks out of the screener instead of simply picking the cheapest on an Acquirer’s Multiple basis. Remember, the cheapest stocks provide the greatest margin of safety for an investor.

February’s Picks

February’s picks include the next two cheapest stocks in the All Investable – Stock Screener, here at The Acquirer’s Multiple. They are Gilead Sciences, Inc. (NASDAQ:GILD) and Express, Inc. (NYSE:EXPR).

While we rely solely on fundamentals when picking stocks from our stock screener, I do take an interest in the current trend of the stocks I’m picking on an Acquirer’s Multiple basis. With regards the two new picks and their current trend, I don’t expect to see much improvement in the near term with both picks still in a downward trend. As a long term investor however, this is inconsequential.

Gilead Sciences, Inc. (NASDAQ:GILD)

(Source: CBA)

Express, Inc. (NYSE:EXPR)

(Source, CBA)

Previous Months

If you wish to check out my portfolio’s performance over previous months, you can find them here:

Month 1

Month 2

Month 3

Month 4

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