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Wednesday, 11 July 2007

US Stock Trade and Portfolio Update - July 2007

This month I selected Aspreva Pharmaceuticals (ASPV) from the current MagicFormula listing to add to my "Little Book That Beats The Market" Portfolio of US Shares (100% geared). I placed an order to buy 200 ASPV @ market (around $18.70). My US Stock Portfolio current situation is listed in the sidebar. I won't have to transfer any funds into my account to settle this month's stock purchase as one of my previous stock picks was taken over, so I have over $5,000 USD cash sitting in my account at the moment.

My portfolio has been hovering around an annualised ROI (XIRR) of 20% in recent months, although my current net gain is only 8.35% as I'm still slowly building up my portfolio (towards a total of 18 stocks accumulated at the rate of one new stock purchase each month). My success criteria is to achieve a return greater than the cost of funds invested (borrowed as part of a "Portfolio loan" from St George bank, so the interest rate is the standard variable home loan rate, around 7.25%), and my long-term target is to achieve a ROI of 10-20% pa.

After I'm fully invested with a portfolio of 18 stocks this December (approx. US$90K) I'll start to sell off the oldest holding each month and replace it with a new pick from the current MagicFormula list. Rather than rolling over the exact amount realised from each sale into a new stock, I'll invest 1/18th of the current portfolio value, adding in some extra cash when needed. That way I'll be investing roughly equal dollar amounts each month.

Copyright Enough Wealth 2007


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