World Cup is over. I liked it, although 2010 one was better. I think. Anyway, my congratulation to Germany's team. Four World Cup wins, equal to Italy and just one short of Brazil. What's more important, it's the first time European team won World Cup in America. European football rules!
Well, back to investments. Looks like I (at around 0%) missed this year's rally. Of course, fixed income helped (I account for most of it separately), but it hurts anyway. Below is my current portfolio and my thoughts
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. I am starting to think that political environment is getting better for stocks. Of course, if GOP takes Senate in November, all bets are off. Other than that, things are getting better. Of course, there is a war between Russia and Ukraine (don't believe that crap about rebels, they are from Russia, mostly). There are problems in Iraq. Europe is still lethargic. But US is booming.
Paradigm Changers. These are stocks of companies that are changing business in sectors or even in the whole world.
I wanted it from the beginning. Didn't get a fair (from my point of view) price until April-May. Many people think that company is only good as a possible takeover target. Wrong! They are just at the beginning of monetizing their popularity.
Sold since last review: Restoration Hardware (NYSE:RH).
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.
No changes since last review.
Risk: Currency fluctuations, more problems in Eurozone.
I wanted to buy cosmetics company for a while. Most of cosmetics are produced by diversified companies, which is not exactly what I wanted. I don't care about toothpaste, razors and cotton swabs. l'Oreal is a pure cosmetics company, located in France, fits the bill.
Bought this company because of instability in the world. Company makes missiles, including popular air-to-air AMRAAM and SIdewinder, radars, software, i.e. most sophisticated military equipment.
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.
Disclosure: The author is long ARMH, DCIX, DSW, EADSY, FB, GOOG, GOOGL, HSBC, LRLCY, MMM, PII, RTN, SAN, TWTR.
Additional disclosure: I have no position in RH. Positions can change any time.