Thursday, July 3, 2014

IRA Performance Update for July 3, 2014

Here is the YTD performance for the benchmark S&P 500:

*Source:  CNN Money

And while the performance shown here for the week is correct, the YTD performance is understated because it doesn't include dividends.  Using YCharts! S&P500 total return index (SPXTR), the YTD performance of the S&P 500 with dividends is +8.54%.

The Chump portfolio was up modestly this week, with a YTD performance now standing at 10.99%, currently better than the S&P benchmark by 2.45%, or 28.7% better.  Here are the Chump IRA holdings; today I present them by industry (courtesy of FASTGraphs):

*Note:  I also own KMI (Kinder Morgan), which is in the energy category.

The yellow highlights are lofty PE ratios vs. the normal PE for the past six years, and should be considered for trimming or selling.  The green highlights represent PE ratios still nicely undervalued as of yesterday's close.

Looking at my industry/sector breakdown, I'm heavy in industrials, consumer staples, and financials, and light in materials and utilities.

Here is an interesting chart showing YTD performance by sector from Finviz:

The two sectors in which I'm light have had very good year to date performance, so I've likely missed out on some good/better returns due to my current imbalance.

I'll look to add a good materials company, and another utility in the coming month.  As always, your suggestions are welcome.




  1. Chump,

    Your 'portfolio' as presented here is just a list of stocks you say you own.
    How can readers be confident what your portfolio results are without knowing the number of shares of each stock and the prices of each holding?

    You seem to be showing a list of names and then perhaps averaing the YTD change in price as if you were equally dollar weighted in every position. That is not possible in a real money world.

    What am I missing? Do you merely suggest we trust you to report your results without any documentation as to accuracy?

    You don't even give a starting and ending total value for the group making % profit or loss impossible to determine.

    What would happen if you sold a big winner or a large loser? The stocks would disappear from your 'list' but the dollars gained or lost would still need to be reflected.

  2. Paul. This is a self directed IRA, with no new money coming in. To measure performance, I simply take the value of the portfolio on any day vs. where it was at any interesting point in the past, YTD, 3 months, six months, one year, etc....

    I make no claims about equal dollar weighting, and show the % weighting of the holdings periodically.

    Trust me or not, why should I care Paul? I'm not doing this for pay, and I'm not telling you to follow my buys and sells. This is simply a blog to document my investing strategy and learnings, and helps me remember the logic, or lack there of, for changes I make to the portfolio. Put simply, this blog is useful to me, and has made me a better investor.

    This is a "real money" portfolio, but for reasons of privacy, I choose not to list the actual $size of the portfolio, but its not really important. I have no reason to mislead regarding my performance, and have blogged in the past that the portfolio underperformed the benchmark.

    If readers of the blog learn anything from my postings, great, that's why I've opened it up to public view. If they have comments, also great, I'm happy to hear them. If they have a specific stock recommendation, that's best of all...I'm open to any investing idea that may be helpful.

    Thanks for commenting,