Portfolio goal. Growth. This is high beta, unapologetic growth portfolio with some safeguards and some boring investments. The goal remains unchanged.
Basic Principles. Most of the stocks in this portfolio were chosen for long term investment, which, for me, is about 18 months. Every stock is under review all the time, with a major review of the portfolio twice a year. I can trade around any position if I feel like it. The portfolio is not diversified by sectors. Diversification reduces risk, but it also reduces potential gain. No change in basic principles either.
Strategy. No strategy change since the beginning of year. I made changes, reducing cash and fixed income since January. I am planning no strategy changes until elections at least. Any changes will take into account fiscal cliff (or lack thereof) in 2013.
Paradigm Changers. These are stocks of companies that are changing business in sectors or even in the whole world.
Probably the best Spanish, and maybe European bank out there. High yield, big investments around the world. Bought it because I believe in resolution of Euro troubles. This is also can be placed in International part of the review.
Since last review I traded around position, resulting in net increase.
Risk: Currency fluctuations, more problems in Eurozone.
Steady growers / high yield. Companies with steady growth, high dividend or both. I am increasing weight of this group, such companies are best investments in depression times.
Returning position. I was wrong to sell it in the first place High and growing dividend, growing company.
There is a lot of fear that decrease in PC production due to mobile computing will decrease consumption of Intel chips. But cloud computing requires a lot of Intel chips, and server chips have higher margin.
Plan: hold, add on weakness.
Since last review I closed Annaly (NLY) and American Capital Agency (AGNC).
I changed strategy in fixed income since last review. Now I have a group of closed-end funds, which are bought when at discount to net asset value or at low premium and sold at high premium. There are two groups of funds: corporate bond funds and muni funds. There are too many of them and they are rotating too fast to present them in the portfolio review. Watch my trades on stocktalk of Seeking Alpha.