Rolling Unabridged Update #3

The fourth month of the Rolling Unabridged Monthly Portfolio (RUMP) is in the books with the results posted a few days ago.  A few were added and more removed.  The only item of note was that KO has tied JNJ in the overall rankings.  The update cycle remains at an eight month lag which is within the desired 6-9 month window.  Following are the highlights, findings, questions and issues identified.

Blog Composition

Bloggers with online portfolios that are not dormant numbered 266 this round.  Roughly 4 were added and 22 dropped due to dormancy, one by making their portfolio private and one by becoming subscription only.

Data

As alluded to earlier, there were no significant changes in the rankings, however both KMI and PM were replaced by OHI and WFC respectively, both of which were recipients of blog chatter leading into the US election.

Strategy

One thing that has caught my attention with these analyses is the multiple strategies employed whether singularly or in combination.  One that I hadn’t seen since 2000 was concentrated IPO investing.  As both dividends and profits rare in this space, his decision to eject his DGI safety net and go ‘all-in’ is one gutsy call.One can only hope his success – or timing -is better than my dabbling at the height of the dot-com bubble.

A Deeper Dive

I have come to the conclusion that this type of analysis – although interesting – is meaningless.  Adam’s data (I Want to Retire Soon) is distorted by frequency while mine is distorted by weighting (or lack thereof).   Meaning in my data, one share of JNJ is equal to 100 shares as the holding – rather than quantity – is paramount.  Therefore I miss weighting changes as the company is either owned or not.  Since a clearer picture cannot emerge, I’ll continue to periodically update the data but only post on major events such as dividend cuts.

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