Friday, April 12, 2013

Chumpmenudo Portfolio Update for 4-12-13

Here are the current holdings in the Chump retirement IRA.  As a refresher, I started building this portfolio in July of 2012, and had it mostly completed by around November 2012.  Timing was good, as the portfolio has been fully invested for all of this year.  YTD performance, with no new money entering the portfolio, is a little better than 10%.

From the chart below, I see that very few positions have yet to reach dangerous levels of overvaluation.  Looking at the EYE ratio, a super useful estimate of return on equity based on EPS growth and dividends, most of the portfolio is still above 7:1, which is my cutoff for most new purchases.

New additions to the portfolio are BBL and O.  BBL has is a nice replacement in the materials and mining sector for CLF, which I sold earlier this year.  O, while overpriced for my taste, is a REIT I've been watching for 5 months.  I initiated a 1/3 position at a price I think is too high, but the stock is up over 7% since my purchase, so I'm not complaining.  I'll look to add to both positions during a correction in the coming year.

While many of my blue chippers like KO, MCD, WMT, and JNJ are pricey at these levels, I have no interest in selling any of these.  My next sell will likely be COP - so far no dividend increase this year, so I'm watching them closely.

When I have a bit more time, I'll update my gains/losses by position, and discuss position weighting, since some have grown nicely.

That's all for now.


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