The R.I.P. Portfolio's Q2 2020 Update

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WG Investment Research


  • This real-money portfolio was first introduced to the Seeking Alpha community in December 2015.
  • The portfolio underperformed its benchmark in Q2 2020 and it is lagging the S&P 500's performance since late 2015.
  • The portfolio was overweight Financials and Industrials heading into 2020 and that turned out to be a terrible decision given the fallout from COVID-19.
  • However, I believe that this portfolio is still well-positioned for the next few years.

The Retire In Peace portfolio, or R.I.P. portfolio, was first introduced to the Seeking Alpha 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.

See the article linked above for additional details on what I would like to accomplish with these quarterly updates. Additionally, the goals for the portfolio and my long-term strategy are identified in the sections below.

Quarterly Market Update

After a terrible start to 2020, the last three months turned out to be a great quarter from a return perspective.


Market volatility seems to be the new normal, at least as long as the COVID-19 headwinds are present, but in Q2 2020, investors were willing to look past the noise in the hopes of an economic recovery sooner rather than later. I tend to believe that a recovery is further out than current expectations. For example, according to FactSet, the bottoms-up estimate for Q2 2020 declined by 37%.

Source: FactSet

The remainder of 2020 is going to be a challenging business environment, in my opinion.

Looking back, from a sector perspective, the winners kept winning and the losers, well, kept losing during Q2 2020.

Source: Ziegler Capital Management

As shown, Energy, Financials and Industrials had lackluster quarterly performances - the three sectors have seen the largest declines on a YTD basis. I was overweight Financials and Industrials in the R.I.P. portfolio so this had a direct impact on the performance. Over the years I have been heavily invested in Technology (positive), Industrials (negative), Financials (negative, outside of late-2019), Materials (negative) and

This article was written by

WG Investment Research profile picture
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 AAPL, GE, BRK.B, PFE, JNJ, BAC, C, FITB, INTC, CSCO, TSLA, NIO, XIN, DGRW, DGRO, FREL, VWO, T, VZ. 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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