Networth Review for January 2007
Posted by Frugal on February 2nd, 2007
For the month of January from 1/1/07 to 2/1/07,
- Networth is down by 0.13%.
- Value of my company holdings (stock options, ESPP, etc.) is down by 8.48% partly due to some sale.
- Everything else excluding my home and cash is up by 0.92%.
- If including cash in #3, it’s up by 0.79%.
- My savings of the last month were 0.08% of my total networth.
I have sold a couple of stocks, and my cash position is slightly up for this month. Looks like the stock bull market is still going strong. Gold stocks went down hard, but have recovered all the grounds. Most oil/gas stocks are still down from last year. I’m watching the market closely for any signs of distribution. Holding tight still.
This month my portfolio benefited from the rise of water stocks, some of which have gone up by 20%. This offset a little bit for my losses in gold & oil.
Special note: returns were calculated by subtracting 3.00% APR return of my cash position.
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February 2nd, 2007 at 2:11 pm
Hello frugal,
Thanks again for your wonderful blog. Got a quick question about house value when you compute your networth. What is the basis of your home’s current worth? (zillow.com or local comparable house sales?)
Thanks,
February 2nd, 2007 at 3:36 pm
Hi, Frugal,
Your blog has become my daily must read list. Really enjoyed your and other’s writting on this site. Do you still hold a lot energy related stocks/funds?
David
February 2nd, 2007 at 11:54 pm
Srini,
I always use local comp (both listings & actual sold price whenever available) to value my home. Zillow.com is always overvalued.
David,
Just check out My Networth page on the top. It’s updated daily, and tell you exactly my portfolio composition. You can check it everyday if you like. Most of my moves are 1% or less of my net worth, so I don’t even bother writing a post on it. Over time, such moves may accumulate. But I don’t usually have lots of trades anyway.
February 3rd, 2007 at 5:48 am
Frugal,
I really enjoy your site and keep up the good work.
Have you considered becoming a bit more diversified? I keep pretty current on the latest research on portfolio construction and you may want to consider adding additional asset classes to your portfolio. In fact, I just read an article about the value of an equal weight allocation to the following asset classes:
- US stocks
- Developed foreign stock
- emerging foreign stocks
- commodities
- US bonds
- Foreign bonds
- Timber
- US real estate
- foreign real estate
- market-neutral equity (long/short or arbitrage fund)
A 10% allocation to each of these provides a 7+% real return and significantly reduces variability (std dev). Email me if you would like a copy of the article.
Regards,
JP
February 3rd, 2007 at 9:43 am
You can cut & paste the article link into comment section.
I do have exposures to most sectors, except I don’t break everything out, nor it’s equal weight. I don’t have foreign bonds, foreign real estate, and timber (although I used to own some timber). I go short occasionally, so I don’t invest in market-neutral equity.
The rest I do own thru my leveraged net worth.
February 3rd, 2007 at 10:32 pm
You dont really have to diversify and here is why. Simply look for the worst performing I-Share for 2006 (which was healthcare – IYH). Then cherrypick from that particular I-share and come up with a list of solid companies that make sense both in a technical and fundamental sense.
The IYH was only up 6% for the entire year last year. However, it seems to be on a tear this year and already up 3.88% YTD.
http://www.marketbarometer.blogspot.com
February 4th, 2007 at 10:28 am
From your networth page, it seems like you are not holding gold at this moment in favor of silver — is that right?
Also, you mention you went more into cash, but it’s not clear from your networth page how much cash you are holding. Can you share the percentage?
Thanks.
February 4th, 2007 at 9:24 pm
Take 1/31/07 for example, my cash percentage is either 68573.87 / 501331.95 (total net worth) or 68573.87 / 323439.77 (everything except home/company). The above numbers have been scaled down, but you can get the exact percentage.
I couldn’t find enough different silver stocks to buy, so it’s just about 1/4 of my total mining or PM holdings.
February 4th, 2007 at 9:32 pm
By the way, I do hold more cash than most people. And if you count the potential cash source from my home equity, it will be quite a lot of cash.
I simply treat cash & my home equity as my “bond” investment. I don’t believe in bonds. At least not now.