I frequently get asked what stocks I own, but I never have talked about it on this blog. I have decided to put together a yearly report showcasing my performance.
I had quite an amazing run this year: my personal portfolio ended with a 47% profit versus a 25% in the S&P 500, beating the market by 22%.
While I will not disclose how much of each stock I own, I will show what percent of my portfolio each stock takes up.
24% of Portfolio: Tesla Motors (TSLA)
Tesla had a wild run this year for sure. The stock itself is up 323% year to date. That brings my average gain (I purchased at different prices) to 451%. Although Tesla makes up 24% of my portfolio, I have sold most of my shares as the stock was going up to lock in profits and reduce risk. I have decided that I will not sell my remaining equity in Tesla until at least April.
Tesla had a heck of a year. Their flagship car, the Model S, was rated by Consumer Reports as the best car ever tested, the US Government rated it the safest car ever made, and they also won multiple car of the year awards. In May they blew out their earnings leaving the stock up 30% in one day.
28% of Portfolio: Apple Inc (AAPL)
Apple should not be a surprise to anyone here. Although I personally dislike their products, they are beloved by most. Apple was up a disappointing 7.8% this year, but I still think they will have a large gain next year. Apple has been getting a bad rap this year, but every time I visit an Apple Store, and hear that there is a long wait just to buy something at 9 AM on Tuesday, I hold on to my stock.
18% of Portfolio: Google Inc (GOOG)
While you may be surprised that I own a lot less Google than Apple, I have sold a fair amount of my Google this year, because it is at record highs. Unlike Apple, Google received a ton of positive news this year, especially relating to their “Moonshot” projects like Google Glass, driverless cars, robots, and hot air balloon wireless networks. Google is up 56% this year, the majority of which was on earnings day in October, after which their stock jumped over 20%.
8% of Portfolio: Berkshire Hathaway (BRK/B)
Although most people don’t know about Berkshire Hathaway, it is one of the largest companies in the world, run by Warren Buffett. It owns companies like Geico, Heinz, BNSF Railroads, Dairy Queen, and parts of companies like Coca Cola, American Express, and Intel. I personally use Berkshire Hathaway as sort of a mutual fund, as they own many different companies and are diversified in themselves. Berkshire Hathaway Class B shares are up 28% this year. It is important to mark the difference between Class A and Class B shares of Berkshire Hathaway. While Berkshire B (which I own) trades for $115 a share, Berkshire A trades for an astonishing $175,600 a share, by far the highest price for a stock on the market. Berkshire Hathaway is considered to be one of the best performing stocks of all time.
7% of Portfolio: JP Morgan Chase (JPM)
JP Morgan stock also had a great year. Despite making very small profits this year because they paid billions in fines for making bad trades, JP Morgan stock is up 33% this year. I am seriously considering buying even more for next year.
5% of Portfolio: Bank of America (BAC)
Bank of America also had a great run this year, up 35%. Pretty much all financial stocks are up in the 30% range since the recovery. Once again, I probably will buy more next year.
Some investments to think about:
I am considering replacing my Berkshire Hathaway holdings with Icahn Enterprises (IEP). As far as companies go, they are similar in that they own many other businesses. Carl Icahn and Warren Buffett have different strategies though, Buffet buys companies and lets them operate, whereas Icahn buys parts of large corporations and then tries to steer them in the right direction. Icahn’s brand of investing is known as “Activist Investing.” Currently, he has been fighting fiercely for Apple to buy back stock. Icahn Enterprises is up 171% this year.
Industry: Natural Gas
For those that don’t know, Natural gas has been an exploding industry in the past few years. With techniques such as Hydraulic Fracturing (Fracking), the United States is actually on the way to exporting oil (there is a ban on it right now) and natural gas. Production is at all time highs for both Oil and Gas. Although my mom (former EPA lawyer) hates me for it, I am very interested in the industry.
My investment portfolio and the stock market in general has had a really great year. I would be extremely lucky if I could achieve even half the gain that I had this year. I have switched my broker from Charles Schwab to TD Ameritrade, and I am very excited to begin trading derivatives on the Thinkorswim (TOS) platform. Have a merry Christmas and a happy New Year!