Intro to the Monkee Portfolio

The Monkee Portfolio

That’s right. Unkle Monkee also runs his own investment portfolio. Of course I don’t do it all on my own. I use newsletters from the Motley Fool to help decide my investments. I subscribe to the Fool’s Hidden Gems (HG) and Motley Fool Stock Advisor (MFSA). I don’t know exactly by how much I’m beating the market (using the S&P 500 as a benchmark) but I am in the black. And it has been a wild ride. I’ve been up and down during this economic tsunami. Having an even temperament and not getting my emotions caught up in the price of my investments has helped me actually turn from red to black.

Don’t get me wrong, the majority of my portfolio is in the red. I have several stocks under my initial buy price. I’ve even added more of certain stocks hoping to take advantage of prices that have gone to low. For instance, when Morningstar (MORN) hit the low $30s, I increased my holding by 25%. I wanted to double down but just didn’t have the stomach to pull the trigger. I compromised and went with a modest increase instead.

Basically two stocks have buoyed my holdings into the black. The first is Neftlix (NFLX). I initially bought shares a few years ago on a recommendation from MFSA. Of the top of my head, I believe my buy in price was around $18-20. When the stock fell further to $12-15 I bought more shares (about 50% of my initial investment). That move has paid of handsomely as the stock hovers in the $40s. Right now I have some valuation concerns with the price but haven’t heard anything from MFSA to indicate selling. I haven’t trolled the NFLX message board either to get a feel of what others think. I’m tempted to scale back to rebalance some. If it runs to the $50s I more than likely will pare it back some (maybe 25-30%). It’s a hold right now.

The other holding that’s keeping me above water is Buffalo Wild Wings (BWLD). This one was a HG recommendation. In addition to the recommended buy, for a while I kept adding shares when ever the price slipped below $30. I sold a portion late last year on a HG recommendation. As it approached $47 they cited concerns about valuation. Instead of selling the entire portion though, they recommended paring back and possibly buying back in when prices fell. I used the proceeds from the BWLD sale to open up positions in three other stocks. Now that the stock is back above $40 I regret I didn’t at least add more shares like I did previously when it dipped below $30.

That’s the good. There is also the ugly.

At the beginning of 2008 I thought Citigroup (C) was undervalued. I didn’t realize or grasp the depths of the impending implosion of bad loans. If professionals missed it, someone like me who isn’t savvy enough to read bank filings was definitely doomed. I bought solely on brand name and stock price. I didn’t read SEC filings or press clippings. I thought Citigroup is a big bank and shares are cheap. I got slapped hard by reality. I bought for around $25 and dumped my shares at around $6. Fortunately I hadn’t built up what I consider a full position of shares. Or else the damage would have been worse. I decided to apply what was left over from the carnage to my margin account loan.

In a future posting I’ll reveal all my holdings. I haven’t figured out what format I want to use. I don’t want to reveal dollar amounts or number of shares I own. I’ll probably give general percentages in relation to what I consider a full position. For example, if 100% means I own a full position of a particular holding then anything under 100% means I’m underweight and probably still adding shares. Anything over 100% means I’m overweight due to my buying more than a full position or the shares have appreciated that much.

I want to be as transparent as possible without giving dollar amounts away. I have to keep something private. I also want to post reasons for buying, selling and holding without giving to much away from the Motley Fool subscriptions. Since it’s a subscription service, I don’t think it would be right to give away information that me and other subscribers have paid for.

Now if I make a buy or sell based on information I get outside the Motley Fool, I won’t hesitate to post that in full. For any stocks I find on my own, I won’t mind posting my full reasoning and thesis for buying, selling or passing on it.

Note: This blog is for informational purposes only. Any decisions on what to buy or sell are solely my own. I gather information from the subscription services, stock screens and my own research and decide whether or not to proceed with a transaction. Everybody’s financial circumstances are different. Anything mentioned in this blog is not a recommendation. Do your own due diligence or consult with an appropriate professional to make you decisions.