Tuesday, September 11, 2012

Freedom Fund Update - September 2012

Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it's aptly named. My portfolio is my way to freedom; freedom from working at a job I don't enjoy to purchase goods I don't need to impress neighbors I don't care about.

I feel extremely fortunate and thankful that I'm able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.

It's been a little while since I published an update on my portfolio due to my "summer break". My, where does the time go? This summer really flew by and with me spending more than I usually do I have much less to show (in terms of capital) for the time. Spending more money and receiving no increase in overall happiness is disappointing, but eye opening. Rather, I've found spending more money and having little to show for it further proof that I'm doing all the right things. Moreover, time does make me happy and the more of it I can buy the more enriched my life becomes.  

The S&P 500 has been up and down since my last update, but is almost at the same exact number as it was on May 1. It was at 1,405 points on May 1, 2012 and it's now at 1,406 points. So, the increase in the value of my portfolio was based on dividends that I received and reinvested, the advancement of individual positions that I purchased on a value basis and freshly allocated capital. Freshly allocated capital was used to purchase stocks that I've listed below.

purchased 15 shares of Chevron Corporation (CVX), 50 shares of Intel Corporation (INTC), 14 shares of McDonald's Corporation (MCD), and an unpublished purchase of 30 shares of Emerson Electric Co on 6/29/12 for $44.25 per share since my last update. You'll also see the number of shares I own of The Coca-Cola Company (KO) have doubled, since the recent 2-1 stock split was fully completed. 

The current market value of the Freedom Fund now stands at $76,156.47. This is a nice increase since my last published value of $67,900.79. Again, this increase comes mostly from the purchases I laid out above as well as capital gains in some of my holdings.

I'm currently invested in 28 positions. This is an increase since my last update, due to the split of ConocoPhillips (COP) and the new entity Phillips 66 (PSX). 

These updates are mainly designed to show the increase in the value of the underlying equities I'm invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So, with that said I don't put too much emphasis in these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one's securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced or not. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren't, and from there I can make educated decisions (based on further due diligence) on which stocks I'd like to add fresh capital to (while considering portfolio weight as well).

How are your portfolios doing?

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