Initial Value $49,945.40
June 15, 2012
Update Value $94,976.50
June 26, 2017
Some investors don’t want to be bothered with following their stocks on a regular basis. They prefer to buy and forget, checking in maybe once or twice a year to make sure there is nothing seriously amiss.
This Buy and Hold Portfolio was created in June 2012 for this type of person. It contains a bond fund and a mix of Canadian and U.S. stocks, which will rarely change.
The equity focus is on blue-chip stocks that offer long-term growth potential plus, in all cases but one, regular dividend payments. The original weighting was 10% for each stock with the bond ETF given a 20% position.
I used several criteria to choose the stocks including a superior long-term growth profile, industry leadership, good balance sheet, and relative strength in bad markets.
At the time, I stated that the objective was to generate decent cash flow and slow but steady growth. The target rate of return is 8% annually.
Recent comments (December 2017):The new portfolio value (market price plus retained dividends/distributions) is $94,976.50, compared to $90,655.74 at the time of the last review. That represents a gain of 4.8% over the period.
Since inception, we have a total return of slightly over 90%. That represents an average annual compound growth rate of 12.4%, which remains comfortably ahead of our 8% target.
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