Given that a number of board regulars have taken the time and trouble to report their portfolio performance results as a teaching/learning exercise, I felt maybe I ought to do the same. I am hesitant however, because I do not invest in the “Saul” stocks so beloved on this board, and discussions of companies that I own have been deemed verboten. Sigh. I’ll keep this post brief and to the point.
As of the end of the day today, my portfolio grew by 38.3% in January 2019.
Portfolio performance for all of 2018 was 51.18%
(These results came after I harvested sufficient profits to fund two years’ worth of living expenses. I’m retired and rely on my portfolio for income. Much as I would have appreciated some other revenue source, there was none and I have bills to pay and groceries to buy. Sigh again).
Some (most) may be surprised by my performance results. They’re not hard to understand if one considers that my inordinately concentrated portfolio is 76% comprised of Enphase (ENPH). Yeppers, one stock and bucket loads of shares (most purchased at <$1) several years ago. I’ve sold well more than half of my shares since because…well…I gots bills to pay and I like to eat (and buy expensive bicycles).
Even so, ENPH remains a 76% position because the share price has appreciated to near 10-bagger status, I believe there’s still ample room for an additional 50% appreciation in share price.
The rest of my portfolio consists of small positions. I once held more shares of these companies but I cashed them out to buy more ENPH during the market correction in December I intend to add to these positions as time/conditions and opportunities permit.
Here’s what I own:
Applied Optoelectronics (AAOI) fiberoptic equipment provider…2%
Albermarle (ALB) lithium and specialty chemical producer….5% (I’m also researching Livent (LTHM) a much smaller lithium pure play)
Diode (DIOD) diode manufacturer…1% (I started nibbling after I kept reading about a global shortage of electronic components, mostly diodes and MOSFETS attributable to the fast growing electrification/computerization of cars)
ICON Plc. (ICLR) drug testing service…1% (I once held quite a few more shares ,but ICLR was VERY good to me so I harvested profits while BREXIT remains unresolved)
Infinera (INFN) long haul optical networker…2% (I think I heard a few gasps/guffaws with the mention of INFN, but I have my reasons)
Micron (MU) memory chip and solutions provider…9%
Skyworks Solutions (SWKS) radio communications…2% (this was an old board favorite until it fell out of favor. I didn’t own it before but I’m buying now)
TransEnterix (TRXZ) surgical robots…2%
Vericel (VCEL) genomic skin/cartilage maker…2%
VMware (VMW) hyperconvergence software provider…1% (yes, yes I know that Nutanix is the overwhelming board favorite)
If there is anything to be learned from my portfolio, it’s this: business enterprises that manufacture “stuff” that fill societal needs can be every bit as lucrative as software vendors. The world does not revolve around software alone. Proof of concept: two of the most profitable investments in the last decade were Apple (AAPL) the smartphone creator, and Intuitive Surgical (ISRG) the surgical robotics pioneer. These are the types of companies I wish to own.
I hope I didn’t offend anyone by choosing a different path, but I’m funny that way. I’ve got a mind of my very own and I ain’t afraid to use it.
May we all live long and prosper