Now and Then portfolio restructuring update 2


How is my readers doing lately?

I told you from my last post that I changed job and I am doing very well.

Oct 31, 2016 Net Worth Update: $208,425 (+$2,631, +1.3%)

and I am so much happier now. New job, new responsibilities, very passionate co-workers with startup feeling etc… I can say that I am a lot less stressed than before and getting challenged on a daily basis which is great! My life just became very exciting!

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New chapter of my life. Bring it on!

I also announced a couple of months ago that I changed my investing style from deep value oriented style to growth at a reasonable price style.

Restructuring my portfolio and changing investing style

After changing my style, I feel so much more confident and sleep so much better at nights.

The biggest reason why I was not a big fan of deep value investing style (asset based investing style) was that they are mostly turnaround opportunities so if the turnaround does not happen, the value may disappear permanently. Also I had to identify a time to sell which is one of the greatest challenges I had with the style. I repeat, I had to eventually sell them!

One great thing about growth oriented investing style is that, the companies that I started invest in have huge potentials and are already proven and extremely well managed companies so I can confidently hold them almost on a permanent basis. They are typically not cyclical, not resource related, somewhat defensive, great and honest managers with significant insider holdings and amazing at allocating capital with high ROE, growing revenue, cash flow and net income at 10-15%. I can go on and on.

It has been a several months so let’s see how I am doing with the new investing style. I will ignore dividend incomes here.

First of all, do you remember I sold the following stocks that I made good money over time of  by using old fashioned value investing style?

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Some great names there

Did I make a right decision to sell them?

Let’s see ‘then and now’ comparison.

now-and-then

Over the period, they dropped by almost $2,960. There are some stocks that grew its value significantly (I lost $850 of opportunity cost on by selling Canadian Natural resources too early, almost $500 on Norfolk Southern $300 on Pizza pizza but I was smart to get out of REITs in time.) I got extremely lucky on Orvana (gold mining stock) so I am very happy about pulling out early and save $2,960 from restructuring.

Let’s see how I am doing with the stocks that I purchased from the proceeds of selling all of the above. Again I will ignore dividend incomes.

after-restructuring

I am more concentrated here meaning I have more confidence in them, I have to follow only handful to make sure they are doing alright.

Total gain of $2,980

So that means $2,960 of saving from selling stocks two months ago and gain of $2,980 of buying my permanent stars (Total comes down to gain of $5,940??  

Many people would be thinking “It was a pure luck you son of xxxxx”

Well I don’t think so. I do not think it as a luck. I am just holding on many superstars. Not just normal ass players but SUPERSTARS.

 

Think about it.

It is like I am having Lebron James, Micheal Jordan, Magic Johnson, Shaquille O’neal and Steve Nash in my basketball all star team.

 

basketball

Do you think they will ever lose? As long as they practice some time together, they will do great under any circumstance.

 

I know they are quite expensive but I am confident that in a relatively longer term, the superstar team will do great and will make me so much money. 2-3 years later, the performance will make me realize they were not expensive at all and I should have bought even more. 🙂

 

Let’s do another review in about 3-5 months from now to see whether I made a good decision or not. You can laugh at me later if I was wrong 🙂 Peace out!

 

 

I recently put Warren Buffett’s top 50 quotes together. Check it out.’

Don’t forget about his stock picking tips!

Have you heard about Peter Lynch, a wallstreet legend? Check out Peter Lynch’s top 13 best stock picking tips as well. You won’t regret it.

When I achieved $200,000 milestone, I wrote 5 key tips to accumulate wealth and achieve financial independence so check it out below.

Hope you enjoyed my post. Remember, if you haven’t, set your saving & investing plans up and try to see how much net worth you have reached as of now and how much it has fluctuated in the past. Knowing where you are and where you will be headed will be a great starting point to be a millionaire and retire comfortably. Hang in there. I will be on the journey with you.

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