2013 Investment Summary

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Writing from Thailand

2013 Investment Summary

Market and Portfolio Performance

Some of you may recall my January 2013 update which started, “As goes January, so goes the year.”  This turned out to be very prophetic as January was a great month followed by a terrific year.  But again the Canadian market continues to underperform; a trend started in early 2011 and continues to date.

December 2013

Year 2013

DJIA

3.0%

26.5%

S&P

2.4%

29.6%

TSX

1.7%

9.6%

My Portfolio

1.4%

20.5%

Although my portfolio underperformed the markets in the month of December, it performed quite well for the year with over a 20% gain.  I could not match the huge U.S. gains due to my heavy exposure to the Canadian market which came in under 10% and some exposure to bonds and fixed income instruments, plus a bit of cash sitting idle. My portfolio is a conservative mix which will usually lag during extreme bull markets, as it does not have the volatile speculative stocks that tend to explode during these times.  However, because it is conservative it will not drop as much during market corrections, for which we are long overdue.  It was a good year to be in the markets.

My main objective, while preserving capital, is to build an income stream with dividends.  I now have enough dividend income to provide a comfortable retirement cash flow, thus my plan is to retire at the end of this teaching year – June 2014.

Some of my outstanding performers:

MMM – 51%

DD – 45%

JNJ – 31%

MRK – 22%

PG – 20%

MO – 22%

COP – 22%

INTC 26%

KMB 24%

PEP 21%

TRI – 30%

I obviously had some lower performers as well:

MCD – 10%

T – 4%

KO – 14%

PM 4%

Plus most of my Canadian stocks.

Purchases

In December I made two purchases.  I increased my position in AT&T (T) and took a large position in Verizon (VZ).  This was in addition to the increases I made to TOT and PM in November.  I made a total of 6 purchase transactions in 2013. The only one I regret and am disappointed in is FTS, a Canadian Utility which is among my very few losers.  I am monitoring BNS.TO as a possible next purchase, as Valueline rates it as one of the best buys among Canadian banks.

Research and Tracking

 

As you are aware, I pay for a subscription to ValuLine, which is where I get the bulk of my information. It is fairly expensive, so I don’t recommend it for a casual part time investor, so if you want anything from them, just let me know and I will take a look.

I follow Rob Carrick of the Globe and Mail, not because he has any particular insight or knowledge about the markets, but because he assembles a lot of data in his columns which are interesting and informative.  Here is a link to an article he published with some interesting websites that are useful for research.

Click HERE

Current stock picks:

Company

Ticker

Financial Strength

Dividend Yield

Dividend Growth 10-Year

3M Company

MMM

A++

2.47

6.50

Abbott Labs.

ABT

A++

2.30

8.50

AT&T Inc.

T

A++

5.23

5.00

Automatic Data Proc.

ADP

A++

2.38

13.50

Baxter Int’l Inc.

BAX

A++

2.83

8.50

Boeing

BA

A++

2.11

10.00

Bristol-Myers Squibb

BMY

A++

2.69

2.00

Chevron Corp.

CVX

A++

3.21

9.00

Coca-Cola

KO

A++

2.99

10.00

Colgate-Palmolive

CL

A++

2.24

12.50

ConocoPhillips

COP

A++

3.93

13.50

Deere & Co.

DE

A++

2.24

13.00

Du Pont

DD

A++

2.86

1.50

Emerson Electric

EMR

A++

2.45

6.50

Exxon Mobil Corp.

XOM

A++

2.56

8.00

Gen’l Dynamics

GD

A++

2.36

13.00

Illinois Tool Works

ITW

A++

2.01

13.00

Int’l Business Mach.

IBM

A++

2.13

18.00

Intel Corp.

INTC

A++

3.50

26.00

Johnson & Johnson

JNJ

A++

2.85

12.50

Kimberly-Clark

KMB

A++

3.09

9.50

Lockheed Martin

LMT

A++

3.66

22.50

McDonald’s Corp.

MCD

A++

3.35

27.00

Medtronic, Inc.

MDT

A++

2.02

16.00

Merck & Co.

MRK

A++

3.54

1.50

Northrop Grumman

NOC

A++

2.12

9.50

Novartis AG ADR

NVS

A++

3.13

16.00

Occidental Petroleum

OXY

A++

2.98

14.50

PepsiCo, Inc.

PEP

A++

2.78

13.50

Pfizer, Inc.

PFE

A++

3.40

6.00

Procter & Gamble

PG

A++

2.95

11.00

Raytheon Co.

RTN

A++

2.42

8.00

Royal Dutch Shell ‘A’

RDS/A

A++

5.13

8.50

Smucker (J.M.)

SJM

A++

2.28

10.50

Texas Instruments

TXN

A++

2.75

21.50

Total ADR

TOT

A++

5.23

15.50

Travelers Cos.

TRV

A++

2.22

4.00

Unilever PLC ADR

UL

A++

3.64

9.50

United Technologies

UTX

A++

2.09

15.50

Verizon Communic.

VZ

A++

4.31

2.50

Wal-Mart Stores

WMT

A++

2.55

18.00

Happy investing in a Happy New Year.

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About borgford

Feel free to contact me with questions: brianborgford@hotmail.com
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One Response to 2013 Investment Summary

  1. Joyce Zomer says:

    Hi, Brian!

    Welcome back to Doha! and the new Year – Happy New Year and all the best for a great 2014.

    We had a quiet Christmas and then went for three days to Amsterdam with some friends and then went to Ameland with Samba. Ameland is one of the Wadden Islands in northern Holland. It was delightful and just what I needed. We ran into my cousin, Marco, and his girlfriend, and celebrated the New Year on the beach with Samba. It was superb and something I’ve wanted to do for awhile. Then I got sick – haha! Work sent me home yesterday for the rest of the day and today. I’ll go back tomorrow and do my classes and then that’s it for me for the week. I work a four day week and have a three day weekend.

    Herman’s looking forward to his upcoming retirement although he’d be happy to work a day or two a week. We’ll see if that can happen. My contract’s until July and I expect a renewal but don’t know if I”ll accept or not. I rather enjoyed being retired! Although I will admit that it’s nice having an income!

    Mom’s death hit me a lot harder that I had imagined and the past couple of months have been tough. Getting away to Ameland really helped. Herman’s been a rock through all of this.

    For the rest, life is pretty darn good! 

    I’ve been updating my finances and bought some more shares. Could you send me Valueline for Merck&Co and Verizon?

    Hope you two are doing well and settling back into life in Doha!

    Hugs to you both. Groetjes from Herman and a paw from Samba. Joyce   “And in the end, it’s not the years in your life that count. It’s the life in your years.” Abraham Lincoln

    >________________________________ > From: Brian Borgford – Investing >To: joycehct@yahoo.com >Sent: Thursday, January 2, 2014 3:16:38 PM >Subject: [New post] 2013 Investment Summary > > > > WordPress.com >borgford posted: ” Writing from Thailand 2013 Investment Summary Market and Portfolio Performance Some of you may recall my January 2013 update which started, “As goes January, so goes the year.”  This turned out to be very prophetic as January was a great month foll” >

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