Well Rounded Investor

My journey of becoming financial independence by 35 years old

Well Rounded Portfolio

Warning: by no mean my portfolio is a well rounded portfolio that would fit for everyone. It fits for me that this particular time. And I will continue to use this kind of strategy to invest and reinvest.

I will update the Well Rounded Portfolio once a month.

Step 1: Determining the Appropriate Asset Allocation for You

For me, right now I’d like to hold equities. But if I ever want to hold bond again, I’d go with municipal bond to avoid taxes ramification. So I’d fall into the aggressive investor category.

Stock Return: 

SP500-historical

S&P Return:

S&P 500 Historical Returns Chart

Bond Return:

*As you can see the interest rate has steadily decline over the years. Recently, there is a currency war among the developed countries and economic powerhouse – EU, Canada, Australia, China, Japan vs. the US. *

10-year Historical Bond Yield

**Even with the mass decline in stock price. You can see over the long hall, stocks seem to do a bit better than bond.**

Bonds vs. Stock Historical Growth Chart Comparison

Conservative Vs. Aggressive Investors

Conservative portfolio    VS Moderately aggressive portfolio

Step 2: Achieving the Portfolio Designed in Step 1

  1. Stock – See my watch list
  2. Bond Picking – as of now, I’ve moved away from bond. Just holding cash position or stock
  3. Mutual Funds – only in my 401K for now
  4. Exchange-Traded Funds (ETFs) – I’m looking to add some but haven’t seen the oppotunity yet

Step 3: Reassessing Portfolio Weightings

  • Analyze and rebalance it periodically because market movements may cause your initial weightings to change.
  • Assess your portfolio’s actual asset allocation, quantitatively categorize the investments and determine their values’ proportion to the whole.
  • Determine which of your positions are overweighted and underweighted.

Step 4: Rebalancing Strategically

Take a moment to consider the tax implications of readjusting your portfolio. Perhaps your investment in growth stocks has appreciated strongly over the past year, but if you were to sell all of your equity positions to rebalance your portfolio, you may incur significant capital gains taxes.

Remember the Importance of Diversification.

  • It is vital that you remember to maintain your diversification above all else.
  • It is not enough simply to own securities from each asset class; you must also diversify within each class.
  • Ensure that your holdings within a given asset class are spread across an array of subclasses and industry sectors.

The Bottom Line

  • Well-diversified portfolio is your best bet for consistent long-term growth of your investments.
  • It protects your assets from the risks of large declines and structural changes in the economy over time.
  • Monitor the diversification of your portfolio, making adjustments when necessary, and you will greatly increase your chances of long-term financial success.

As of 5/17/15, I hold 22 position as follow in my taxable account:

Description
Symbol Trade Shares Cost Last Original Market Unrealized Gain/ Unrealized Gain/ Today’s Today’s Change Price/
Date1 Basis Price ($) Cost Value Loss ($)1 Loss (%)1 Change ($)1 Change (%) in Price Earnings per Share (P/E)
Common Stock
ALIBABA GRP HOLDING ADR BABA 9/22/2014 100 $90.01 $85.08 $9,000.59 $8,508.00 ($492.59) -5.47% ($60.00) -0.70% ▼(0.6) $52.71
AT & T INC T 3/6/2015 30 $33.48 $35.91 $1,004.40 $1,077.30 $72.90 7.26% $26.10 2.48% ▲0.87 $32.65
BANK MONTREAL QUEBEC BMO 1/7/2015 12 $67.40 $60.88 $808.80 $730.56 ($78.24) -9.67% $8.28 1.15% ▲0.69 $12.26
BANK OF AMERICA CORP BAC
Detailw
5,677.00 $17.04 $17.67 $93,141.21 $100,312.59 $3,565.66 3.69% $1,135.40 1.15% ▲0.2 $25.24
BAXTER INTERNATIONAL INC BAX 5/13/2015 10 $68.16 $70.67 $681.60 $706.70 $25.10 3.68% $6.40 0.91% ▲0.64 $16.32
CAPITAL ONE FINANCIAL COF 4/27/2015 10 $81.05 $89.38 $810.50 $893.80 $83.30 10.28% $0.60 0.07% ▲0.06 $11.71
CATERPILLAR INC CAT 3/6/2015 10 $80.66 $88.45 $806.57 $884.50 $77.93 9.66% $1.80 0.20% ▲0.18 $14.18
CITIGROUP INC NEW C 3/4/2015 100 $53.56 $57.39 $5,356.49 $5,739.00 $382.51 7.14% $44.00 0.77% ▲0.44 $21.49
DEERE & CO DE 3/6/2015 10 $90.02 $93.68 $900.20 $936.80 $36.60 4.07% $1.30 0.14% ▲0.13 $12.34
DIAGEO PLC DEO 2/13/2015 15 $113.72 $121.95 $1,705.80 $1,829.25 $123.45 7.24% $30.00 1.67% ▲2 $34.16
DOMINION RES INC VA NEW D 3/4/2015 100 $70.45 $67.56 $7,045.48 $6,756.00 ($289.48) -4.11% ($70.00) -1.03% ▼(0.7) $27.02
FORD MOTOR COMPANY F
Detail
53 $15.24 $15.29 $807.55 $810.37 $2.82 0.35% $8.48 1.06% ▲0.16 $19.86
GENERAL ELECTRIC COMPANY GE 3/9/2015 50 $25.52 $27.55 $1,276.00 $1,377.50 $101.50 7.96% $6.50 0.47% ▲0.13 N/A
JPMORGAN CHASE & CO JPM 4/27/2015 10 $62.96 $69.75 $629.60 $697.50 $67.90 10.79% $7.90 1.15% ▲0.79 $12.78
KINDER MORGAN INC DEL KMI 5/29/2015 10 $41.54 $39.43 $415.40 $394.30 ($21.10) -5.08% ($2.20) -0.56% ▼(0.22) $44.30
LUMBER LIQUIDATORS HLDGS LL 4/29/2015 43 $27.03 $21.60 $1,162.29 $928.80 ($233.49) -20.09% $53.32 6.09% ▲1.24 $14.12
PRINCIPAL FINANCIAL PFG 4/27/2015 10 $52.01 $53.29 $520.05 $532.90 $12.85 2.47% $2.70 0.51% ▲0.27 $13.00
PROCTER & GAMBLE CO PG 5/29/2015 10 $78.35 $79.79 $783.50 $797.90 $14.40 1.84% ($6.60) -0.82% ▼(0.66) $25.33
REALTY INCOME CORP O 3/6/2015 50 $48.83 $45.11 $2,441.50 $2,255.50 ($186.00) -7.62% ($19.00) -0.84% ▼(0.38) $41.77
TWENTY-FIRST CENTY FOXA 4/27/2015 10 $34.81 $33.42 $348.10 $334.20 ($13.90) -3.99% $1.50 0.45% ▲0.15 $7.83
VERIZON COMMUNICATIONS VZ 9/29/2014 200 $49.50 $47.77 $9,899.22 $9,554.00 ($345.22) -3.49% $48.00 0.51% ▲0.24 $20.07
VISA INC CLASS A V
Detail
60 $67.42 $69.42 $4,045.07 $4,165.20 $120.13 2.97% $19.80 0.48% ▲0.33 $31.06
WAL-MART STORES INC WMT
Detail
60 $77.73 $72.57 $4,664.00 $4,354.20 ($309.80) -6.64% ($13.20) -0.30% ▼(0.22) $14.60
WELLS FARGO COMPANY WFC
Detail
530 $51.22 $57.89 $27,148.20 $30,681.70 $3,533.50 13.02% ($10.60) -0.04% ▼(0.02) $14.15
Total Stocks $175,402.12 $185,258.57 $6,250.73 3.49%
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4 comments on “Well Rounded Portfolio

  1. Pingback: Juventus Double-Decks Bus Holding Off Real Madrid Relentless Attacks | Well Rounded Investor

  2. No Nonsense Landlord
    May 17, 2015

    Great mix, but I would advise an ETF. You may need to switch stocks in the future, and decide not to due to tax implications.

    Also, your stocks are down, and the S&P is up. Why not just own the S&P. Most financial managers cant beat it, all you have to do to match it is buy it. At Fidelity, IVV is a free trade. Buy as much, or as little, as you want.

    Like

    • Vivianne
      May 17, 2015

      Thank you for commenting. I have s&p 500 70%, mutual fund housing index 15% and 15% foreign (Europe). I’ve been checking out your recommendation from your last comment. I haven’t pulled the trigger yet.

      Like

  3. Don
    September 20, 2016

    Wow, you got a lot of money in bank of america and banks in general. Not sure if that a good idea! From your chart, it seem S&P 500 index fund is the way to go, but market is at an all time high so I would dollar cost average into it or wait for it to go down and put a large chunk in. That’s what I am doing, holding cash and waiting patiently for something bad to spook the market. Just a matter of time.

    Like

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