We continue to build up cash and liquidate holdings with lower QDV or less compelling growth in stock price long term. Gone are Kraft and Allstate. Kraft may yet turn into a more robust grower, but with a QDV of only 9% and with the long term trend sideways we took this bounce as an opportunity to exit for now. We will revisit if things improve. Allstate's QDV dropped to 8.5% from over 10% only a few quarters ago, and although it has a long term uptrend, it trades wide and loose. Too bad. It had a pretty good dividend yield.
We have increased our cash position from near zero to around 15% into this rally. There are some excellent QDV candidates out there that we will await attractive entries to add to our leaner portfolio.
On a side note, we are now at our anniversary date from when we started, which was Oct 04, 2006. In actuality, we took a few weeks to build up all of the positions, but we had most of them in place by that time. Anyway, based on unrealized gains and index-weighted realized gains, we have a 20% return on invested capital for the last 12 months. This does not include roughly 3% in dividends. We outperformed the Wilshire 5000 by around 2.5% during the period. In short much of this return is market return, and not anything special we did.
Needless to say, I am happy with how things have turned out so far.
We have increased our cash position from near zero to around 15% into this rally. There are some excellent QDV candidates out there that we will await attractive entries to add to our leaner portfolio.
On a side note, we are now at our anniversary date from when we started, which was Oct 04, 2006. In actuality, we took a few weeks to build up all of the positions, but we had most of them in place by that time. Anyway, based on unrealized gains and index-weighted realized gains, we have a 20% return on invested capital for the last 12 months. This does not include roughly 3% in dividends. We outperformed the Wilshire 5000 by around 2.5% during the period. In short much of this return is market return, and not anything special we did.
Needless to say, I am happy with how things have turned out so far.
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