Today is the end of month seven of The Acquirer’s Multiple $45,000 – Deep Value Stock Portfolio – Real Money Game, and the portfolio is up 10.02% since inception, compared to 10.49% for the comparative Russell 3000 (INDEXRUSSELL:RUA).
The Deep Value Stock Portfolio – Real Money Game means I’m investing my entire superannuation valued at $45,000 into a real life Acquirer’s Multiple Portfolio and documenting it here.
The plan is to build my portfolio over the next twelve months and ongoing. After twelve months I’ll have thirty stocks equally weighted in the portfolio, then I’ll re-balance each position after one year and one day to minimize tax.
Here’s what the headings mean:
Company: Company name
Ticker: Stock symbol
BUY$: 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
Daily%: The percentage change in price since the previous trading day’s close.
After seven months the portfolio is in good shape following last month’s drawdown. The portfolio also outperformed the Russell 3000 (INDEXRUSSELL:RUA) last month, which also rose 2.2%. Highlights include the 88% gain by Bridgepoint Education Inc (NYSE:BPI), and the 52% gain by Fiat Chrysler Automobiles NV (NYSE:FCAU). Last month’s picks have also started well with R1 RCM Inc (NASDAQ:RCM) up 26% and Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) up 11%.
It’s important to remember that when you add new stocks to your portfolio they will initially hurt your performance. The reason is simple. Let’s say you have ten stocks in your portfolio and the overall portfolio is showing a 10% gain since inception. When you add two new stocks this means you have to divide your overall performance by twelve stocks to include the two new ones. When you divide the 10% gain by twelve stocks this automatically reduces your performance gain to 8.3% (10% divided by 12 stocks).
Ultimately the new stocks will generate their own returns to add to the portfolio’s performance but that takes time. A lot of investors think that the portfolio is not performing well when the new stocks have been added. They become impatient and discard the portfolio. This of course is a mistake.
Latest picks include the next two cheapest stocks in the All Investable – Stock Screener here at The Acquirer’s Multiple. They are Bellatrix Exploration Ltd (NYSE:BXE) and Argan, Inc. (NYSE:AGX).
While we rely solely on fundamentals when picking stocks from our stock screeners, 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 trends, here is the current trend analysis.
Bellatrix Exploration Ltd (NYSE:BXE)
Argan, Inc. (NYSE:AGX)
If you wish to check out my portfolio’s performance over previous months, you can find them here:
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