{"id":285,"date":"2008-09-20T17:22:19","date_gmt":"2008-09-20T21:22:19","guid":{"rendered":"https:\/\/stockherd.com\/moosepond\/?p=285"},"modified":"2010-02-15T12:16:50","modified_gmt":"2010-02-15T16:16:50","slug":"weathering-the-storm","status":"publish","type":"post","link":"https:\/\/stockherd.com\/moosepond\/2008\/09\/20\/weathering-the-storm\/","title":{"rendered":"Weathering the Storm"},"content":{"rendered":"<p>Despite the tumultuous week on Wall Street, our portfolio weathered the storm.\u00c2\u00a0 Since the beginning of the of the year, the value of a unit share in Moose Pond Investors declined about 2% from $13.647 to $13.375.\u00c2\u00a0 However, the overall stock market declined 13.1% for the same period (using the Wilshire 5000 index).\u00c2\u00a0 Our internal rate of return, which takes into account all cash flows for the portfolio, for the same period is -2.5%.\u00c2\u00a0 Here is a detailed <a href=\"https:\/\/stockherd.com\/moosepond\/files\/rpts\/PerformanceRpt_2008-09-20.pdf\">YTD performance report<\/a>.<\/p>\n<p>AIG was the big loser, dropping 93%.\u00c2\u00a0 The stock is probably a lost cause.\u00c2\u00a0 Good thing we didn&#8217;t but any more!\u00c2\u00a0 The other contributors to our losses this year were Synovus Financial (-50.8%), Total System Services (-35.2%), Microsoft -28.5%), and Intel (-26.5%).<\/p>\n<p>An astute reader of this blog pointed out that most of the drop in price for Synovus Financial (-50.8%) this year was a result of the spin-off of TSS in January.\u00c2\u00a0 That&#8217;s exactly correct.\u00c2\u00a0 Just looking at the price of SNV does not tell the whole story. \u00c2\u00a0 At the beginning of the year, our holdings in SNV had a value of $1,758.\u00c2\u00a0 SNV and TSS currently have a combined value of $1,392.\u00c2\u00a0 So the actual decline in value this year is only 20.8%.<\/p>\n<p>But for the losses on AIG and TSS, we would have been in positive territory for 2008.<\/p>\n<p>We do have some winners this year.\u00c2\u00a0 They include Helmerich &amp; Payne (+40.3). Wells Fargo &amp; Co. (+36.2%), Amgen (+29.1%), Sun Hydraulics (+26.4%), and Lowes (+26.3%).\u00c2\u00a0 This underscores the importance of diversification and quality in a portfolio.<\/p>\n<p>Take a look at the <a href=\"https:\/\/stockherd.com\/moosepond\/files\/misc\/mi_2008-09-20.pdf\">portfolio dashboard<\/a> from Manifest Investing.\u00c2\u00a0 We may want to consider selling Bed, Bath &amp; Beyond and Brown &amp; Brown.\u00c2\u00a0 At the same time, we may want to slightly increase our holdings in Microsoft, Walgreen, Transoceanic, and FactSet Research.\u00c2\u00a0 Each of these companies have a high quality rating and high projected average return.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite the tumultuous week on Wall Street, our portfolio weathered the storm.\u00c2\u00a0 Since the beginning of the of the year, the value of a unit share in Moose Pond Investors declined about 2% from $13.647 to $13.375.\u00c2\u00a0 However, the overall stock market declined 13.1% for the same period (using the Wilshire 5000 index).\u00c2\u00a0 Our internal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/285"}],"collection":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/comments?post=285"}],"version-history":[{"count":16,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/285\/revisions"}],"predecessor-version":[{"id":414,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/285\/revisions\/414"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/media?parent=285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/categories?post=285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/tags?post=285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}