Current portfolio (eliminating those covered by call options):
Utilities 18.0%, NEE, ES, POR, ED, AEP, WTRG, WEC
Staples 10.2% PEP, NSRGY, KMB, HRL, STZ, PG
Healthcare 15.0% (10% Biotech/Pharma): ABBV, MRK, MCK, JNJ, TMO, NVO, LLY
Communications 7.6% GOOG, TMUS, CMCSA
Discretionary 5.6% AMZN
Industrials 14.3% UNP, LMT, HON, SWK, CSL, RTX
Technology 12.2% MSFT, ADBE, NVDA, ACN, CRM
Financials 10.4% BRK.B, V, GS, FI, PYPL
Energy 2.6% XOM, CVX, EOG
Real Estate 4.0% O, PSA, MAA, AVB
Big eight at 38.5% MSFT, BRK.B, GOOG, AMZN, UNP, NEE, PEP, ES
Those eight are chosen based on a combination of quality, growth, and value. Could probably have a decent portfolio with just those and nothing else, but it would be a bit concentrated for my tastes. My numbers suggest a 10.0% forward return (VL numbers suggest 12.4%), but as you know I'm not that optimistic about things. I'm hoping for a five year return in excess of 4% (the yield alone is 2.2% here) while the frothy valuations wash out (as they always have in the past).Only two of the positions -- STZ and KMB -- have a Growth + Yield under 8%. Thus if valuations are stable over the next five years, I'll be seeing returns that approximate the VL number. |
