Portfolio Update: February 2015
Another month of work and play has rolled on by, and with that comes my latest portfolio update. My portfolio is my ticket to financial independence; the more money I can save and contribute, the faster I’ll get there. I’m buying businesses that raise their dividends each year, and I’m building a growing stream of dividend payouts that will one day pay all of my expenses. I’ve enjoyed sharing my investment activity this past year, and I hope these updates help inspire others to take charge of their own finances.
Any lost ground the market suffered in January roared back and then some, as we’re back to setting new highs again. It was a good month for me to have limited contributions. A higher market means less attractive investment values for long term shareholders. I was only able to make one purchase in February, and that was of successful spin-off company Baxter International. When I posted about my purchase, I forgot to mention the Cardinal Health’s (CAH) spin-off of CareFusion set to complete later this year. That makes 5 spin-offs since 1992! This is likely the last time I’m adding to BAX for a long while, and I can’t wait to see what happens post spin-off.
I’ve been saving at great speeds lately, but it appears I messed up a bit last year and am going to have an unexpected tax return of about $2,500. Yay and Ouch! I’d much rather that be closer to $0 or even owe money since I could have been using that money to buy more stocks and be that much further ahead; going forward I’ll be fixing my W2’s. My total contributions for the year are trending down compared to my 2015 goal; this will continue for the next few months as we’re amping up our savings account. So far, I’ve invested $4,565.15 these first two months.
My portfolio gained around $2,000 all by itself in February. It’s nice finally seeing larger swings in such a short time, it’s just unfortunate it swung in the wrong direction. I’m hoping for a market and portfolio decline in March so that new investment options become more obvious. When I include my lone investment over the month, my portfolio gained 7.38% or $3,485.92 compared to last month. Year over year, I’ve grown my portfolio 360.25% from $11,023.17. This graph shows my portfolio continuing to climb:
I’m officially halfway to my first 100K! But I wish the market would start to drop from here. I wouldn’t mind taking my time trying to get there. Either way, I’ll be buying fundamentally sound businesses for the long term. By looking at my portfolio, you’ll see it needs a lot of work, especially in the consumer sector’s where I’d love to be overweight instead of severely underweight. At least I’m not alone in my struggles to find value there since Chuck Carnevale, creator of F.A.S.T. Graphs™ recently penned the article, “Impeccable Quality, But There Are No Bargains Today In The S&P500 Consumer Staples Sector: Part 8.” I’m keeping my eyes open on a lot of core businesses there and might end up having to jump in with a smaller position for some slight premiums; it’s a small price to pay for quality. Here is my February 2015 Portfolio Snapshot:
How was your February? What are you buying?