Tuesday, August 4, 2015

Valuation Check of the Portfolio

Comparing normal PE ratios for the past 5 years, with current PE ratio for each holding gives a sense of valuation.  If a holding is well above it's normal 5 year PE, it's likely to revert to that average in the coming months/years.  Further, these stocks are usually more susceptible to a correction, and get hit harder when the overall market drops.  With this in mind, I mapped my holdings here:

Per these valuations, I recently trimmed MDT and WBA, which were larger holdings in the portfolio.  I will likely also trim MO and ALK in the coming days, which have also grown large in the portfolio.

On the buy side, I've added to UNP, UTX, and TUP recently....all in the green.

That's all for now,


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