Royal Dividends launched on July 13, 2022, and its first acquisition was made on July 18, 2022. After the 11th stock was added to the portfolio, I published a post titled ‘Going Forward’ and laid out a plan for continued investment in the ‘Portfolio for the Ages’. Here I present an updated version of the investment plan going forward. There are no big changes only small refinements.
…This week, two of the portfolio holdings ranked in the Top 10: MMM and QCOM.
| Ticker | Account Value |
| MMM | 2,650.75 |
| QCOM | 2,668.00 |
The lowest amount belongs to MMM. In order to invest a minimum of $250 in MMM, I would need to purchase 3 shares this Monday.
However, doing so would create an exposure violation.
…This week, three of the portfolio holdings ranked in the Top 10, MMM, QCOM, and TDS.
| Ticker | Account Value |
| MMM | 2,413.00 |
| QCOM | 2,458.00 |
| TDS | 2,623.00 |
The lowest amount belongs to MMM. In order to invest a minimum of $250 in MMM, I need to purchase 3 shares this Monday. Read on to see the purchase history of this stock, the average cost calculation (subject to change), and the exposure risk checks.
…This week, three of the portfolio holdings ranked in the Top 10, MMM, QCOM, and TDS.
| Ticker | Account Value |
| MMM | 2,590.20 |
| QCOM | 2,404.80 |
| TDS | 2,205.99 |
The lowest amount belongs to TDS. In order to invest a minimum of $250 in TDS, I need to purchase 22 shares this Tuesday (the market is closed on Monday). Below, I present the purchase history, average cost calculation (subject to change), and expected weights.
Ordinarily, I update the Performance page once a week, the evening after the latest investment. Last night was the first time I could recall seeing a positive return since September 26, 2022, when the portfolio reached its initial maturity level of 11 positions, one stock from each sector. This is obviously good news. However, investors do like a yard stick, a way of measuring whether or not this is good performance or not. Unfortunately, there is no easy way to compare the performance of this portfolio to that of an index for multiple reasons which will be explained.
Yet, the thirst for comparison remains and so I search for a suitable benchmark.
…This week, three of the portfolio holdings ranked in the Top 10, MMM, QCOM, and TDS.
| Ticker | Account Value |
| MMM | 2,280.96 |
| QCOM | 2,306.80 |
| TDS | 2,283.19 |
The lowest amount belongs to MMM. In order to invest a minimum of $250 in MMM, I need to purchase 2 shares this Monday. Below, I present the purchase history, average cost calculation (subject to change), and expected weights.
Below is an example of the table I had been including with my weekly investment.
There are three things I felt like changing with this table, starting with the one I published earlier today (below).
Did you notice the changes?
…This week, three of the portfolio holdings ranked in the Top 10, MMM, QCOM, and TDS.
| Ticker | Account Value |
| MMM | 2,158.56 |
| QCOM | 1,868.98 |
| TDS | 2,024.57 |
The lowest amount belongs to QCOM. In order to invest a minimum of $250 in QCOM, I need to purchase 3 shares this Tuesday as Christmas will be recognized on Monday. Below, I present the purchase history, average cost calculation (subject to change), and expected weights.
Position sizing within a portfolio is an important component of managing risk. In order to avoid excessive exposure to the performance of any one stock, investors will limit the weight of stocks within the portfolio. It is not uncommon to invest, at least initially, equal amounts into each stock of a portfolio. Thereafter, the portfolio might be rebalanced periodically.
Suppose an investor has placed 2% of his nest egg into each of 50 stocks. If one company goes completely out of business and the stock drops to zero, the portfolio has only lost 2%. However, for more active investors who wish to purchase additional shares of only those stocks with the highest expected returns, maintaining an equally weighted portfolio becomes impractical; every time he wishes to add to one position, the same amount (give or take) must be added to the others.
This is undesirable, imperfect, unfortunate, indiscriminate.
…This week, three of the portfolio holdings rank in the Top 10: MMM, QCOM, and TDS.
| Ticker | Account Value |
| MMM | 1,802.10 |
| QCOM | 1,884.28 |
| TDS | 2,040.01 |
The lowest amount belongs to MMM. In order to invest a minimum of $250 in MMM, I need to purchase 3 shares this coming Tuesday as Christmas will be recognized on Monday. Below, I present the purchase history, average cost calculation (subject to change), and expected weights.
