Yes, I know you want me to get to the end of year results and 2016 goals already. Those will be my next two posts. Promise.
Meanwhile, it’s time for a review of the first quarter of my Primerica analysis. Here’s my initial write up. On Christmas Eve, I used my remaining free cash to purchase this group of companies. I did make a few changes to the original selection:
- Replaced DFS with MA – DFS is a bond investment for PRI. using equities as a proxy, I felt that MA was the better choice
- Replaced GNW with TRV. With GNW’s underwriting issues, I felt TRV was a less risky alternative
- Added BAC – BAC is an underwriter on some of PRI’s holdings.
I was surprised by the results for the quarter. Primerica itself outperformed its’ components.
For the quarter ending December 31st, Primerica returned 8.9% versus the bundle’s 6.4%
OK … the comparison still has a ways to go, but if this continues I may have to reconsider my theory. There are a few external drivers on the horizon:
- The Fed’s decision to raise rates should benefit the bundle
- Primerica should benefit from the sales force’s energy leading up to the annual meeting
So the game continues with no further changes to the lineup. With fout dividend increases announced, it’s time to see if the bundle can get back into the game.