Baby AAI is now
walking running and so is his portfolio! He’s also starting to talk. He has plenty of time to grow and learn while his portfolio is also working for him.
I funded Baby AAI’s account with an initial $7500 in a taxable account and have been contributing $100/week since 02/27/17, so we’re just over the two year mark.
I figured it’s been a while since there was an update and there have definitely been some new transactions. The last update was the 1-year update that can be found here.
That 1-year old portfolio just held 4 positions, CRI, HBI, DIS, RDS.B.
The number of positions have doubled to 8 now!
Below is the current portfolio after 2 years. Previously Carter’s was killing it, up over 35% at around 120/share. Shares came down a little. The biggest winner currently is Paypal.
I’ve purchased new shares in FOXA, PYPL, PEP and just recently CVS. I also sold off just a few shares of Hanes (HBI) and have turned off any drips. I’ll let the dividends accumulate with new cash to put to work in my best ideas at the time. The 6th column is my cost basis followed by total return.
The last update valued the account at $13,448 which was above the projections of $13,225. So let’s see how we’re doing now against the original projections, which assume 7% compounding.
I’m hoping to achieve a 7% CAGR which will put the balance right at $200,000 by the time he’s 18. That’s by doing nothing else but contributing $100/mo and letting the power of compounding work its magic. I used a simplified actuarial formula assuming $7500 contributed right away and $5200 ($100/month) contributed at the end of each year.
Here’s a graph of what the value should be at the end of each year, of course the stock market has large swings up and down so this is in a perfect world of 7% compounding each year.
So basically, by the end of the second year, February 27, 2018, the portfolio should be valued at $19,350.75. At the end of February the portfolio was approximately $20,500.00 and is still currently ahead of schedule with a portfolio valued at $21,099.00.
I can’t wait to watch this portfolio grow! I’m sitting on about $1500 in cash and will be watching and waiting for another opportunity.
I’d love suggestions on a next purchase for BabyAAI.