My total portfolio value hit $250k Wednesday for the first time. This is an increase of $50,000 in exactly 3 months. While I’m not as concerned about my total portfolio value as I am about dividend income, it’s still nice to see the value increase with additions of new capital and capital gains. In order for companies to keep paying higher dividends, their earnings also need to increase which usually causes the stock prices to go up as well.
I think most of us are expecting or hoping for some sort of correction this year. These same feelings were there for me this time last year. That correction never came. Regardless of my feelings, I didn’t quit contributing fresh capital to my portfolio by way of new purchases each week. I’m extremely glad I kept consistently contributing as you saw the markets rise significantly in 2013. You see, nobody can predict the markets. Instead of watching the DJIA or S&P 500 move up and down daily, I’m looking for companies that represent a good value at the current time.
I’d like to keep my portfolio at around 40 positions. My portfolio weight in energy is higher than I’d like but that’s where I’ve been finding value lately. I’ve added a lot of capital fairly recently into BP, RDS.B, CVX, and ESV. I expect this weight to come down as other sectors go in and out of favor.
I’m still shooting for a portfolio valued at over 1.7 Mil that yields an average of 3.5%. This will produce 60k ($5k monthly) in income. So I’ve got a long ways to go to reach my goal.
My next portfolio milestone will be $350k and $500k after that. I hope to hit $350k sometime this year. I appreciate everyone that has been supportive and that reads my blog. I try to be as transparent as possible by posting all my trades, good or bad.
I keep a live updated portfolio on Google Docs that can be seen on my portfolio page here.