January 7, 2008
Porfoilio Performance Update
So far my performance has been, predictably, bad.
Most of my funds are invested in Canadian fixed income as result of the sale of my previous business in 2006. I have been waiting to invest them in good businesses but did not find any until lately. So far I have picked up LOW and BAC and looking to add additional positions that provide good value.
Bank of America is down 10% from where I bought it and Lowe's Home Improvement is down another 5%. Banking and home retail are under pressure and will continue to be under pressure due to several economic factors. I will be adding to these two positions around earning announcement as I expect them to decline further and I expect to buy more in the next quarter as well.
I have reviewed RioCan REIT in an older post and deemed it as a value idea, read it here
With the market faltering RioCan came close to my entry price of $20, so I purchased an entry position @ $20.10. I have not committed any significant money to the position but I will add to it in the weeks to come as it goes lower.
My target is to have 80% allocation to equity and 20% in fixed income by the end of the year, currently my allocation is the opposite. Some areas I am looking for buys are banking, real estate (office, industrial and retail), and Canadian gas industry. I will keep you updated with new ideas as I finish my analysis.