As 2011 comes to a close, its time to review the 'timeless portfolio'.
(Since last year, the blog has seen a spike in monthly page views. About
+170%. Don't know if its bots or actual people, but if you are actual
people reading this, THANKS! The link to its performance is to the right of the blog, under "Links". I created the portfolio as a means to potentially outperform the market with minimal trading activity. See here. Since its creation, I have only made one change per year. It is a stark contrast to how I usually trade.)
The portfolio ended the year with a +2% gain from last year.
The only change I made this year was to unload KMP. KMP usually trades with a yield of mid 6%. It is currently yielding at its lower range low/mid 5%. Because of this, I swapped it with another steady yielder, VZ. VZ is currently trading near its 5 year average. (If VZ begins to approach its lower-end yield range of high 3/low 4%, I will capture the stock appreciation and walk away from this one too.)
The biggest under performers were F and BGCP. I was expecting more of a dividend out of Ford this year to keep its stock elevated, but I guess management was being more prudent with their cash due to the economic climate.
BGCP was and is knocked in sympathy from the EU crisis. I doubt I will let BGCP go, but if Ford does not give more of a dividend in 2012, I will most likely replace it with DD. (Especially if DD ever approaches the high 30s from a shaky market.)
Since the inception of the 'timeless portfolio' the two year performance is +21.4%. In relation to the market, the SP500 is up around 12% since 2010, and basically flat for 2011.
Through the lens of my short-term trading perspective the performance is not great. But in perspective to this year's market craziness and in relation to the over all market, I do not think the performance is that bad.
Happy New Year, and Happy Trading!