Through the first half of 2009, the portfolio gained +3.2%. This compares with the S&P 500 being up +1.8% over the same time. It is nice beating the S&P 500, but these gains are nothing to write home about because they lag a benchmark I like: the rate of inflation plus 10%.
I also think these gains could be erased going forward, since my holdings have certainly benefited from the bull rally in what remains a bear market. I could easily see a down year when all is said and done.
Here's where the portfolio stand as of June 30:
DirecTV Group 10.0%
King Pharmaceuticals 6.8%
Microsoft 6.2%
Cheung Kong ADR 5.9%
Fairfax Financial 5.9%
EGI Financial 5.5%
NipponKoa Insurance 5.5%
Foot Locker 5.4%
Superior Industries 5.3%
Liberty Media
(3 tracking stocks) 5.1%
Capital Southwest 4.7%
BCE 4.4%
3i Group 1.1%
Media General Under 1%
Cash approximately 27.7%
Some notes. These figures are not audited, just me and my calculator. So if I'm off a bit, sorry.
The portfolio stretches over three accounts: my regular brokerage account
and two retirement accounts. Most of my liquid net worth is in the
positions above. The "Controlled Greed portfolio" isn't some little
portfolio on the side. It is real money. Unless I lose it all, that is.
;-)
You'll notice DirecTV Group is by far my largest holding. It is even larger when we consider that DTV is also a major part of one of Liberty Media's tracking stocks. I may well be making a mistake by letting this position remain as is without scaling back and taking some profits. We'll see.
Fairfax Financial is a nice-sized holding. Remember that I've sold enough of this stock a while back to get my original capital out of it. The holding is a free ride.
The portfolio holds enough cash to establish 5 new positions at some point. I don't know when that will be.
I'm content with all the holdings, except for Media General and 3i Group. MEG has been a disastrous investment and represents money lost. 3i Group may fall into that category as well. Yet we'll have to see what the private equity firm does when the market comes back to make that call.
Let's see what the second half of 2009 has in store.
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