The R.I.P. Portfolio: Q2 2018 Update

Jul. 04, 2018 3:25 AM ETAAPL, ACN, AMGN, BABA, BAC, BHF, BKR, BRK.B, C, CAH, CLDR, CRL, CSCO, DIS, DD, META, FKINX, GE, GM, HON, INTC, JNJ, KEY, KR, MET, MRK, PFE, PG, PRU, SBUX, SFTBY, SPY, SYF, T, TGT, TWTR, TWX, UA, UTX, VZ, WAB, WNC45 Comments
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WG Investment Research
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Summary

  • This real-money portfolio was first introduced to the Seeking Alpha community in December 2015.
  • The portfolio has underperformed its benchmark so far in 2018, with General Electric being a significant contributor, but it is properly positioned to benefit from several major trends.
  • The financial holdings were a drag to the portfolio's Q2 2018 performance but, looking out, the banks are well-positioned for the next few years.
  • The portfolio's projected income for 2018 is up almost 35% YoY.

The Retire In Peace portfolio, or R.I.P. portfolio, was first introduced to the Seeking Alpha ("SA") community in December 2015 and I have published quarterly articles that captured the activity and performance of the portfolio since that point in time. The companies that I write about on SA are largely the holdings of the R.I.P. portfolio, so the main purpose for the quarterly articles is to allow for my SA followers to track the performance of the stocks that I write about on this platform.

However, I am also interested in hearing from the entire SA community about these stock holdings because I learn valuable lessons from the insights that are provided on this platform. Therefore, I hope that these quarterly updates lead to constructive discussions about the companies that I consider core holdings.

The core holdings - see linked article above for a listing of the core holdings, in addition to each company's identified short- and long-term catalysts - are not necessarily the companies that I plan to hold for the next 30 years; but instead, they are the companies that I would like to hold for that period of time (i.e., buy-to-hold strategy). I will closely monitor these holdings and will trim, add to, or eliminate positions if a company's "story" materially changes.

The R.I.P. Portfolio's Goals And Strategy

I am building this portfolio with retirement in mind, so I have 30-plus years to invest and make adjustments; therefore, the quarterly volatility is not a major concern. These funds will stay in the market for the foreseeable future, so the portfolio will have the luxury of compounding for many years.

Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." -Anonymous.

It is also important to note that

ChartBAC data by YCharts

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This article was written by

WG Investment Research profile picture
8.33K Followers
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long GE, BHGE, HON, BRK.B, UTX, T, VZ, FKINX, DIS, BAC, C, KEY, DWDP, SYF, TGT, KR, SBUX, JNJ, AMGN, PFE, MRK, CRL, CAH, MET, PRU, BHF, AAPL, TWTR, FB, CSCO, INTC, SFTBY, CLDR, ACN, GM, PG, BABA, WNC, UA, MTZ, FSI, GPRE, TDOC, AVD, KTOS, RHE, KMG, XIN, TSLA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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