Here is an overview of my current portfolio: Dividends are reinvested on all stocks that have dividends except KMR, was told KMR does not allow partial shares to be reinvested by my broker.
Portion bought before doing any valuations and less research than I am doing now. Lessons to be learned.
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Giant Interactive (GA) 34 shares originally acquired 20 shares in November 2010. Will get back to later
Intel Corp (INTC) 15 shares bought originally at a cost basis of $19.72
Kinder Morgan Management (KMR) bought 5 shares at a cost basis of $62.50
Main Street Capital (MAIN) bought 15 shares originally at a cost basis of $18.73
Altria (MO) bought 11 shares originally at $26.91
Philip Morris (PM) bought 5 shares originally at $69
Taseko Mines (TGB) have 70 shares total now at a cost basis of $4.77, ouch, will get back to later
Universal Insurance Holdings (UVE) have 49 total shares now at a cost basis of $4.85
Vodafone (VOD) bought 11 shares originally at $26.21
Stocks after valuation and now doing a lot more research
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Vivendi (VIVHY) 32 shares at $18.35
Dole (DOLE) 58 shares at $8.74 owned in retirement portfolios that I manage for others.
Also own Vivendi 62 shares at $16.19 in retirement portfolios that I manage for others.
I wish I would have been doing valuations and the amount of research I am doing now from the beginning of my investing journey, I would have saved myself a lot of money, around $600. Would have stopped me from buying a lot of overvalued companies and bad companies. Most of the money I lost was when I first started and about half of my portfolio was in Chinese small caps ouch again, which brings us back to GA.
I just sold my entire position of 34 shares in GA, the other 14 shares were from a special dividend paid and a regular dividend paid. I did some valuations of GA yesterday and got a reproduction value of $1.45 per share. If it was selling at 5X EBIT and 10X EBIT I got prices of $3.88 and $7.77 per share respectively. I try to be very conservative in my valuations so I get the biggest margin of safety, and hopefully a bigger return later on. I usually won’t buy now unless there is a 50% or greater margin of safety.
Not good since my cost basis even after the special dividends was around $6 per share for GA, remember I bought GA before I started doing valuations or the amount of research I am doing now. So even if it was selling at 10X EBIT it would not have met my criteria now of the 50% margin of safety.
Taseko Mines is kind of in the same realm my cost basis now is $4.77 per share at 70 shares, bought all shares before doing any valuations, now I get a reproduction value of $3.70 per share. So not only will I most likely lose money on this stock no matter what happens, even if the Prosperity mine that would be a gold and copper mine if it is approved, gets approved I still would only make a minimal amount of money due to my high cost basis and lack of margin of safety.
The lesson here is to get decent at some valuation techniques buy at a margin of safety and hold and reinvest the dividends if they have dividends.
Oh and don’t have half of your portfolio in Chinese small caps as a beginning investor when you aren’t doing valuations or in depth research.
My next post will be going over my detailed valuations of Vivendi and Dole, my reasonings for buying them, how long I plan to hold them, and which part of the portfolio both with be in.