Thursday, March 7, 2013

Portfolio Update


I promised to try and update portfolio holdings so here goes. February was a very tricky month for me. A lot of holdings hit their price targets so I found myself potentially stuck in a situation with too little long positions. Theoretically this is fine because I can just reduce my index shorts but the problem is that if there are too few positions the correlation with the index declines significantly leaving me subject to a lot of directional risk.

The solution is to buy more stocks but most of the stocks I found where in the tech sector and I simply wont subject myself to the risk of being overweight in anyone sector. My worst ever month in investing occured when I had chronic back pain and couldn't work so much. I ended up being loose and found myself overweight in industrial cyclicals precisely when the market murdered them in May/June 2011. I am not going through that again. My back problems have been cured thanks to listening to Roger Federer (who I bear a light resemblance too) and how he deals with the problem!

So here is how I restructured and the current long holdings. Things are going well. You well find write-ups on most of these stocks in this blog. Leave any questions in the comments section.

Home Depot
TJX Companies
IBM
Ixia
Walgreen
Discover Financial
Citrix Systems
Williams-Sonoma
Henry Schein
Wells Fargo
CVS
Johnson & Johnson
Pfizer
Adobe Systems
Biotech Holders ETF
Nice Systems
Lowe's Companies
Intuit
Sanofi
Vectura (half position)
Tesco


That's all folks and, all the best with your investing.