Portfolio Update: 28.70% YTD vs 9.72% S&P, Out of $DEXO

While updating the portfolio performance figures today I realized that I did not report the sale of DEXO from the Premium portfolio, as I typically do for my readers. So here it is

DEXO Sale

On Oct 25, I sold out of the remaining 50% of the DEXO I still owned and recommended the members do the same. The cloud over DEXO’s merger with SPMD is an additional risk that I am not willing to take. As you recall, the first 50% was sold on Aug 21 this year and netted a 88.35% gain.

This particular sale was as follows:

  • Sell price: $1.06/share
  • Gain (on this particular lot): 10.46%, net of commissions
  • Original purchase date: 18 Nov 2011

Overall for the entire holding of DEXO, gain averaged 49.4% in a little less than 1 year.

Portfolio Update

The election results have caused the investors to leave the market in droves last week. The decline in S&P 500 index has been quite steep from 12.45% YTD at the end of last week to 9.72% for a 1 week decline of 2.43%. The VSG Premium Portfolio last week declined from 29.19% YTD to 28.70% YTD or a 1 week decline of 0.38%.

Currently on a price return basis, we continue to do exceedingly well as the table below shows

Returns VSG S&P500
YTD 2012 28.70% 9.72%
Inception 116.71% 44.63%

 

The chart below shows how $100 invested in VSG Portfolio would have grown over this time, compared to a market index. Again, dividends are not included in this chart.

image

 

For the record, the inception date is Jul 23, 2009

While I do not try to time the market, I have every reason to believe that the valuations in the short term will become more attractive. Consequently we are at 21.6% cash in the portfolio that will be deployed when an opportunity with highly favorable odds comes along. We have sat on this cash level for atleast 2 months, if not more and I am looking forward to put these to use in the near future.

"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."

Warren Buffett

Looking forward to closing out another successful year in the next 1 month.

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