My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

Portfolio Update - November 2007 (Down 3.75%)

Contributed by mm | December 2, 2007 9:33 AM PST

stockmarket.jpgSUMMARY

The stock market took a nosedive in November after three months of gains. At one point, the market was officially declared "in correction," defined as more than 10% off recent highs.

Obviously my finance-stock-stuffed portfolio is not spared from the chaos. It ended the month with a 3.75% loss, even slightly worse than the benchmark loss of 3.47% in the same month. On a year-to-date basis, my portfolio is still up 9.4%, compared to 8.4% gain of the benchmark.

TRANSACTIONS

I'm quite busy in managing my positions in November. Key transactions include:

1) Exercised 1/3 of my vested employee stock option positions (MSFT) at $36.60. Before this month's transaction, I haven't exercised stock option for over 7 years now. The action is prompted first by valuation concerns -- MSFT was bid up to a level that is above my calculation of intrinsic value after a blow-out Q1 release, and second by diversification purposes -- my employee stock option account was representing 17% of our net worth at the end of October and it was obviously too high.

2) I sold all 400 shares of Apollo Group (APOL), the online education titan that is behind University of Phoenix and alike, at $71.21. I bought these stocks back in November 20, 2006 at $35.05 apiece following Morningstar's recommendations, and although I didn't catch the high, I'm comfortable with the double-bagger performance. Also, since I sold after the 20th, all capital gains will be taxed on a long-term gain basis.

3) I snapped on American Express (AXP) and Bank of America (BAC) before the end of the month. Although there are still uncertainties, my firm belief is financial stocks are screaming value now.

NEXT STEPS

- I might need to make one or two loss-taking tax-driven sales. Likely I will sell some Citigroup (C) shares at a loss and (temporarily) replace them with a similar issue.

- With the cash infusion after my stock option exercise, my cash position is higher than I would like to be. I'm looking for opportunities to reduce my cash position to 15% or below in coming months.

PORTFOLIO PERFORMANCE

portfolio-nov07.jpg

This Post Has Received 5 Comments. Share Your Opinions Too.


nelsonal Commented on December 3, 2007

You might consider selling some MSFT long term call options if you wanted to capture some of the value of your remaining options (in and out of the money). Find strikes near yours and sell the longest LEAP that your options represent.

Note that not every broker will allow this, but I'd guess that in the position you're in most would.


jj Commented on December 3, 2007

nelsonal

as an MSFT employee, the blogger maynot be permitted to trade MSFT options.


MM Commented on December 4, 2007

nelsonal, yes, i can sell the time value of the options, but this comes at the cost of potential price decline in the future, right?


STC Commented on December 4, 2007

What is ? I don't find a ticker for that anywhere.


STC Commented on December 12, 2007

What is the RUS? (Russell International Growth). Is that a mutual fund? I can't find a ticker for it but would like to check it out since I'm comparing international funds to invest in.


Add Your Comments










Remember personal information?




(It will take a few moments for your comment to be published. Please do not close the window until then.)


Read More ... 311 Posts In The Same Category










This page was last rebuilt at February 09, 2014 08:15 AM PST. (356 Words)
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)