My Stock Market Portfolio
Just four years into investing I have accumulated shares in 30 companies and keeping track of them all is no easy task!
After experimenting with many ways of keeping track of my portfolio and how closely I have to scrutinise earning releases I have finally found a way that I feel works well and allows me to provide readers of this blog a visual way in which to see my portfolio.
I'm therefore very pleased to share with you all my 'Dividend House' - a perhaps 'cheesy' but effective way to present my portfolio.
Disclosure: I came across this way of presenting a stock market portfolio through Seeking Alpha Author Dividend House
Portfolio sections explained
My stock market portfolio has been divided into three main sections.
1. Foundation Stocks - Represented by the house's grey foundation.
2. Supporting Stocks - Represented by the house's orange walls.
3. Auxiliary Stocks - Represented by the house's blue roof.
Along with these three main categories there are two further categories;
* The thought cloud represents sold positions
* The dog house represents stocks which I am monitoring closely with the view to sell.
Over the longer term I expect my foundation stocks to generate the majority of my dividend income. I have very little concern as to their capital value - as long as they keep producing dividends like clockwork.
These foundation stocks are the stocks that I expect to hold forever bar some sort of catastrophic fundamental deterioration in fundamentals or a dividend cut.
Most of the companies included as my foundation stocks have a long history of growing their dividends through thick and thin and, to me, represent the best of the best.
Support stocks have a shorter history of paying dividends or have cut their dividends at some point. This doesn't mean that any of these companies are fundamentally inferior.
For example - Apple has an exceptional balance sheet with over $250bn in cash! But having just resumed paying its dividend in 2012, I need to see a continued track record of increases for Apple to earn its spot in the foundation of my portfolio which is easier said than done for a tech stock.
I call these my 'exciting' stocks!
Most of these stocks are smaller cap and as such are much riskier plays than my core holdings.
Don't get me wrong - I have full confidence in these companies ability to succeed but given that most are more vulnerable, smaller companies I won't be 'banking' on them to consistently provide me with dividends.
I also have a few speculative plays in my auxiliary such as the Chinese tech giant Tencent and the struggling Dixons Carphone.
When it comes to purchasing auxiliary stocks I' much more flexible when it comes to the margin of safety I usually demand from my foundation and support stocks.