Dear fellow investors, ladies and gentlemen, friends, and family. This month, my stock portfolio outperformed the market and we will figure it out together why? but before that let me start by highlighting the main points:
- My stock portfolio outperformed the market
- I didn’t buy any new stock this month
- Some stocks proved to be solid, some fragile
As usual, I try to keep my portfolio updates as simple as I can so everybody can understand it, so you will not see me talking about the FED interest rate cut, the high unemployment rates or the high corporate debt levels …
For those who don’t know me and are first-timers, I mainly Invest in dividends stocks using dividends growth investing strategy together with value investing, I Simply invest in blue-chip solid companies with a wide moat and I buy and hold forever. This is my plan for building wealth long term and reaching FIRE (Financial Independence, Retire Early).
I also have a small growth stock portfolio I created a month ago which you will see later on in this article.
If you are new to investing and you want to start, check out my Getting started: stock investing HERE
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My current Dividend stock portfolio
You can download from here:
This Portfolio dividend’s Yield is 4.23%
So with everything happening in the epidemic situation and its massive impact on the stock market, my portfolio was doing good and what I mean by doing good is performing better than the market itself (S&P 500).
So every week i receive an email from simply wall street, some of them saying that my portfolio outperformed the market like this one for example:
So I was curious why my portfolio is performing better than the market, I know I made great buying decisions in the past but there still something I need to know. so after a little bit of digging, I found out that the secret was simple: Diversification
My portfolio is well-diversified across different sectors and the main sector that really backed my portfolio is the health sector and one of my stocks even performed positively +6% which is GILEAD Science, CVS health for example only -1.6%.
Another stock that performed positive returns last month which is not in the health sector is the shipping company UPS with +2.4%.
So you can clearly see the power of a well–diversified portfolio.
For the month of March, the ROI on My dividends stock portfolio is -11.36%
Stocks that paid me dividend
- PEPSICO INC
- Dominion Resources
- General Motors Co
- Kellogg Co
- Realty Income
- McDonald’s Corp
- Walgreens Boots Alliance
- United Parcel Serv.B
- Hanesbrands Inc
- Pfizer Inc
Total dividends received 0,275%
My dividends portfolio Intrinsic Value based on Free Cash Flows
My portfolio is 41.3% undervalued which gives me a huge margin of safety.
My current Growth stock portfolio
It is my simple, straightforward portfolio that consists of 3 big fast-growing companies.
This growth stock portfolio also outperformed the market with -7.15% compared to the S&P500 -13.73% and Amazon went up +1.57%
My growth portfolio Intrinsic Value based on Free Cash Flows
My growth portfolio is 18.9% undervalued which is still a good margin of safety.
For the month of March, the ROI on My Growth stock portfolio is -7.15%
Best stocks Based on performance
- Gilead Sciences
- CVS Health Corp
- Walgreens Boots Alliance Inc
- Cisco Systems Inc
- Kellogg Co
- United Parcel Service Inc
Worst stocks Based on performance
- Pebblebrook hotels
- Park hotels and resorts
- Realty Income Corp
- Simon property
- Enterprise Products Partners LP
- Hanesbrands Inc
- Magellan Midstream Partners LP
REIT and oil stocks performed the worst is this period and heavily affected by the coronavirus down to -60%, on the other hand, healthcare stocks performed the best up to 6%.
Best buy now stocks
- Realty Income
- Dominion Energy
- Cardinal Health
- Royal Bank of Canada
This list did not change from the last month, this stocks still a solid buy.
What is my next move
At the moment I’m not willing to buy, I’m sitting back and just observing what’s happening in the market.
The only 2 conditions that will trigger me to buy more is either this pandemic ends and all governments announce that they contain the problem and life back to normal or a cure found for the corona-virus.
If you want to keep investing and buying or you are totally new and you want to know what is the best levels to buy check out my post HERE
My portfolios historical returns
PS: The portfolio started at 14% and that’s all my return from ex-trading/investing before starting FIRE and long term dividends investing.
That’s it for this month, I just want to conclude with some advice about investing in the current situation:
Don’t panic, don’t listen to the news, never sell.
Keep investing, keep following your strategy.
Get ready with your cash to enter when good opportunities come.
let me know what’s your portfolio performance this month and Please if you have any questions, feedback or anything you want me to cover/ explain, don’t hesitate to leave a comment or contact me. Also, don’t forget to subscribe to my newsletter so you don’t miss any new post.
I do not show my portfolio/investments amount numbers $$$ because I want to keep privacy also I don’t want to confuse you with bigger or smaller numbers then yours, instead I use percentage, it is easy to understand, follow and apply on your personal portfolio/investment decisions.