Friday, March 14, 2014

Portfolio Update

It has come to my attention that several people are concerned about my posting the ongoing performance of this portfolio. They seem to be concerned that I don't list the amount of money going into the TSP every month. I only show the money going into the brokerage accounts.

When I started publishing this portfolio online, it wasn't my intent to influence others to invest the way I do. Originally, this portfolio was published for a way to keep my son updated as to what was going on in his portfolio and as a teaching tool, to show him how and why I bought and sold positions.

My son is in the military and has traveled all over the world. Having a blog was the easiest way to communicate. We understood that others would be able to eavesdrop, and we had no problem with that.

Since the portfolio was published for my son's benefit, I never thought to ask what his monthly TSP contributions were. They show up on his pay stub, so I assumed he already knew that. Now that others are following along, they want to compare the results with other strategies and to do that they need more information.

The blog wasn't set up for that purpose, but I have nothing to hide. That's why I announce all moves in advance, something other public portfolio's don't do. And more importantly, I don't hide my mistakes. At the end of every month's update is a list of companies that used to be in this portfolio. People can see for themselves whether I made the right decisions in selling or not.

I don't breathe a sigh of relief when I'm able to remove a position from the portfolio and it goes unseen forever, saving me from embarrassment. I don't get to simply brag about my successes, the failures are there for all to see as well, and that's where the true lessons come from. It's only through our failures, and our efforts to avoid making them again that we learn to become better investors.

So, the mistakes stay and the TSP monthly contributions will be shown in future monthly updates under the TSP section of the update.

The bi-weekly contribution is $63.93. That's in addition to his $500 per month contribution to his brokerage account.


8 comments:

  1. Dear Chowder, as a human, your investment acumen is fantastic; I greatly admire (and try to emulate) how specific your goals/objectives are; your disciplined approach to investing; your focus on accumulating great quality companies; and above all your honesty and willingness to share your wisdom! I am an avid follower of your comments, writing and this blog. There are always naysayers and critics, however, what you do and share is refreshing and inspiring! Sincere gratitude and appreciation! Best regards!

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  2. Even though I've been actively investing for 25 years, I've learned a great deal from reflecting on your philosophy and straightforward framework for analysis. I'm sure I speak for thousands, thank you.

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  3. Thanks for the transparency, Chowder. As a young investor just getting started, your advice and comments, both here and on SA, have been invaluable. Thank you for it all.

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  4. Hey, Chowder, there's the expression, "Haters will hate." I've learned a >tremendous amount< from your comments on SA, and this blog. Provide details at the level you are comfortable with; ignore the haters. As soon as you give the haters what they want, they will find something else to complain about. The vast majority of us are quiet but appreciate very much hearing about your investments experiences and thinking. Keep up the good work!

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    1. Thanks John, I don't intend on changing anything. This portfolio is a long-term project and I know what I am doing will be successful over the long term. The portfolio is ahead of schedule, and that's all I can ask for. It's doing better than it was supposed to. I'll take it.

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  5. Chowder,
    Please thank your son for his service to our great country. As a veteran, I appreciate your son's sacrifice and both of your decisions to continue posting to this great blog. While meant for only you two, it has helps me convey to my friends both in the military and out of the military the importance of having a sound financial strategy and the beauty of dividend reinvestment, compounding interest, and of course the "chowder rule." Please continue doing what you are doing!

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    1. Thanks for the kind words KC. A lot of people have asked why the risk ratio of this portfolio isn't higher. I don't think it has to be. He'll be collecting a pension from the military at age 38 and then the plan is to work for a firm that also has a pension plan, allowing him to collect a second pension at age 58. With his experience, security clearances and knowledge in the technical field, I'm assuming defense contractors will be more than happy to hire him.

      Two pensions, SS and Project $3 Million? I'd trade places with him in a heartbeat!

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