I started actively managing my Taxable account in March of 2020. In my spreadsheet, I track my initial purchase dates for each holding. As I have mentioned many times before, I went diversi-crazy when I first started out. Since I was routinely adding new positions, I have a number of holdings that are coming up on purchase date anniversaries.
I initiated positions in two companies on 5/8/2020 - $PG and $RTX. Here is how the Market and these holdings have performed in the last two trips around the sun:
That’s what drove me to start looking for ways to track my investments across platforms. First few years of learning there was a lot of trading and not a lot of profits, but as I honed skills and realized what info was important and what 98% is BS info I could toss out, returns have turned around quite a bit. Can’t wait to be 2 years down the road and have a better investing journal.
Each week I do a review of a stock I purchase or one that is at the top of my Scorecard. I did not make any adds this week, so I will be reviewing Raytheon Technologies, $RTX. I currently hold $RTX in my Taxable Portfolio.
Raytheon is an aerospace and defense conglomerate. Raytheon Technologies researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones. The company is also a large military contractor, getting a significant portion of its revenue from the U.S. government - Wikipedia
Raytheon's primary competitors in the space are Lockheed Martin ($LMT) and Northrop Grumman ($NOC).
Raytheon Technologies was formed by the merger of Raytheon Company and United Technologies in 2020.
Since the merger in 2020, revenues have increased but profits have waffled.
Having a dividend yield greater than my portfolio average (+0.5)
Underweight versus holding target (+1)
P/E under 50 (+0.5)
Personal Conviction Score (+1) - Just updated last weekend
Raytheon has been a major player in the defense industry for many years. Now that the merger has settled and the business is starting to stabilize, I am excited to see how earnings continue to grow in the future. With the recent developments in Europe, I have increased my Conviction Score to High - in anticipation of larger scale developments. This change bumped $RTX up from a mid range 3.5 on my Scorecard to a highly rated 4.
Do you hold $RTX? If not, what is your favorite Defense stock?
My buddy works for $RTX. It’s cool they’re paying for his masters degree from USC, but he says the amount of red tape is mind-numbing. Makes sense on gov contracts but he says it makes it so frustrating when to order a pack of screws they have to go through multiple layers of management and end up paying $60 from an approved vendor when they could go to Home Depot and get it for $5. Just interesting to me how gov work never tends to be efficient/waste minimizing
Portfolio Bracketology has concluded and you have chosen $AAPL as your champ! $AAPL beat $VTI 21 - 16 in the final poll results (combined between Twitter and Commonstock poll).
Below is the final bracket:
The bracket was made up of all 55 of my active holdings - as verified here on @commonstock. Seeding was based on total return since initial acquisition date through 2/28/22. Final rankings are based on poll results - ranked in each round by initial seeding.
Here are final rankings of all 55 holdings based off the results of the bracket (Initial in Parentheses):
I do my best to stick to a routine cadence when it comes to investing. I have written about some of my methodology here, if you are interested.
Just like doing routine maintenance on your car, I do routine maintenance on my portfolio. The first weekend of each quarter I review my holdings and make updates to conviction ratings, reinvestment strategy and make any sales to trim positions. This routine alignment ensures I am on my intended path, but is also scheduled, so I don't go off the rails and make drastic changes on a whim.
Some of my rules for my portfolio alignment:
Sales - My rule is to trim overweight positions that I have held for 3+ years or sell positions that are <1% of my portfolio after 3+ years of holding.
Dividend Reinvestment - Reinvest dividends of S&P beaters in Taxable. Reinvest dividends of underweight holdings in Roth IRA.
Conviction Rating - Review each holding and record gut conviction (blind to previous rating)- either Low, Medium or High.
None. $CMA and $VTI were candidates for me to sell, but I do not feel the need to trim these positions right now.
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.