Annual Update – 2016 Review

Welcome to the annual 2016 update. This is part of  a series where I track our financial progress on a regular basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

2016 saw a big change in direction of my overall portfolio. I decided to cut the number of individual stocks I own as life has gotten busier both personally and professionally. In addition, the current economic environment does not give me a lot of confidence to stay fully invested and decided to move to a cash-heavy position over the summer.
On an ongoing basis, I continue to invest in index funds regularly, which gives me broad market exposure and is currently on “cruise-control”. I have a smaller set of companies that I focus on and make bigger bets on each instead of spreading myself too thin by investing in 40, 50, or 100 companies. Studies have shown that the Unique risks drops substantially by owning as little as 12 stocks. To be on the safer side, I want to focus on a approximately 20 companies and invest in those stocks instead. I have discussed more about this topic in the past — see this post. As a result, you will notice a lot of sales in the following image.
I present the following image which summarizes all the purchases (excluding the regular ETF/seg fund purchases which occur regularly on a monthly basis), all the sales, and all dividend increases in my portfolio.

Companies listed without any activity during the year mean that we did not add or remove these positions in our portfolio, nor did those companies have any change in dividend policy. These investments remain dormant in our portfolio.

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Annual Update – 2015 Review

Welcome to the annual 2015 update. This is part of  a series where I track our financial progress on a regular basis. I present four parts in this series: (i) Investment & Portfolio Update, (ii) Passive Income Update, (iii) Blog Update, and (iv) Goals Update.

1. Investment & Portfolio Update

2015 saw some great amount of activity in our portfolio. We initiated/added to various positions and closed one position that did not fit into our portfolio. I present the following image which summarizes all the purchases (31 in total excluding the regular ETF purchases), all the sales (just one this year), all dividend increases (35 in total) and the dividend cuts (just one) in my portfolio.

In my wife’s portfolio, we initiated a new ETF portfolio and moved from the traditional expensive mutual funds. Click here to read details about my wife’s portfolio and why we chose the route of index ETFs.

2015 Annual - DG2

Overall, I am pretty pleased with the purchases made. Lots of fresh new money put into the portfolio and the cash put to work in investments. Most of the dividends received were reinvested back into the investments, thus ensuring we compound our growth going forward.

Companies listed without any activity during the year (such as CVX, GE, and IMG.TO) mean that we did not add or remove these positions in our portfolio, nor did those companies have any change in dividend policy. These investments remain dormant in our portfolio.

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