Using data from our portfolio dashboard on Manifest Infesting, here are some proposed changes to the portfolio.
First, sort the portfolio by projected average return (PAR) to show which stocks have the highest and lowest PAR. You do this by clicking on the PAR column heading or look at this PDF file. (Place your mouse over the embedded yellow note in the PDF file.)
The six stocks on the bottom (highlighted in yellow in the PDF file) have the lowest projected average return. Looking at these stocks, that is not surprising. Two are bank stocks (WFC and SNV). The current housing market adversely impacts LOW. Similarly, a decrease in consumer spending impacts BBBY and WMT.
We should consider replacing all of these except JNJ. (JNJ is a high quality blue chip stock despite the mediocre PAR. It is a keeper.)
Now we can add to our positions in stocks we already own with stocks that have a higher projected average return than those we are replacing.
Look at again at our portfolio dashboard. Now sort by the value this time, so our largest positions are on top and our smallest positions are on the bottom. Look for stocks for which we don’t yet have a 5% position and which have a projected average return of more than 20%. We can would increase our position in those shares to about 5% or $2,000 total.
This PDF file shows the idea. The candidates for replacement are shown with struck through text. These are the five stocks with the lowest projected average return or PAR. The candidates for additional shares are highlighted in yellow.
There are several additional stocks we may want to consider, including ADBE, AAPL, PCP, and PTR. More to follow on this.