IWB Growth Portfolio

a higher degree of risk in exchange for more growth potential

Rate of Return: 24.0%

Initial Value $10000

August 13, 2012

Original Issue

Update Value $118518.00

March 18, 2024

Update Issue

GROWTH PORTFOLIO AVERAGES 24%

By Gordon Pape, Editor and Publisher

The stock market is rolling right now, and our Growth Portfolio is reaping the rewards. It’s ahead over 30% in the latest six months, a record period for us.

The portfolio was launched 11-1/2 years ago, in August 2012. It had an initial value of $10,000 and a target annual growth rate of 12%. It’s a high-risk portfolio, with 100% exposure to the equity markets. It’s not a place for cautious investors.

Here are the securities that make up the current portfolio, with an update on how they have performed since our last review in late August. Prices are as of the close on March 13.

iShares US Aerospace and Defense ETF (BSX: ITA). This ETF invests in the US defense and aerospace industry. We added it to the portfolio in 2021. We posted a gain of $10.24 per unit in the latest period and we received two distributions for a total of $0.658 per unit.

 Alimentation Couche-Tard (TSX: ATD, OTC: ANCUF). Alimentation operates convenience stores in Canada, the US, and Europe. This stock has been a huge winner for us and continues to generate handsome profits. It’s up $12.22 since our last review. The company raised its quarterly dividend by 25% to $0.175 a share.

WSP Global Inc. (TSX: WSP, OTC: WSPOF). Montreal based WSP is an international engineering and design firm. This stock is another big winner. It gained $34.72 in the latest six-month period, plus we received two dividends totaling $0.75 per share.

TFI International Inc. (TSX, NYSE: TFII). This Montreal-based trucking firm was added to the portfolio in February 2023 and is performing well. The shares were up $19.84 in the latest period. The company increased its quarterly dividend by about 12% in December to $0.5275.

Nvidia (NDQ: NVDA). Nvidia makes computing chips for AI processors, and its sales keep beating even the most optimistic expectations. We added the stock, which was recommended by contributing editor Adam Mayers, to the portfolio in February 2023 and it has almost tripled since. Over the latest period, the shares gained $416.24. That’s not a misprint!

Apple Inc. (NDQ: AAPL).  Apple shares have lost momentum and were down $16.52 in the latest period. We received two dividends of $0.24 each.

Costco (NDQ: COST). Costco shares were up $191.94 in the latest period. As a bonus, the company declared a special year-end dividend of $15 a share, on top its normal quarterly payout of $1.02.

CGI Group (TSX: GIB.A, NYSE: GIB). This is a Montreal-based international consultancy company that has been on our recommended list since August 2012. We added it to the Growth Portfolio last fall at $140.51. It’s now at $159.66. This is the only stock in the portfolio that does not pay a dividend.

Cash. We had cash and retained earnings of $2,734.15. We moved the money to Duca Credit Union, which was offering a high rate of 5.25%. We received $71.77 in interest.

Here is how the portfolio stood at the close on March 13. Commissions are not considered. The US and Canadian dollars are treated as being at par but obviously gains (or losses) on the American securities are increased due to the exchange rate differential.

IWB Growth Portfolio (a/o March 13/24)

Symbol Weight

%

Total

Shares

Average

Price

Book

Value

Current

Price

Market

Value

Retained

Distributions

Gain/

Loss

%

ITA 5.5 50 $107.42 $5,371.00 $126.96 $6,348.00 $111.75 +20.3
ATD 10.0 140 $8.32 $1,164.10 $83.48 $11,687.20 $379.49 +936.6
WSP 17.5 90 $27.00 $2,430.29 $225.30 $20,277.00 $534.11 +756.3
TFII 5.2 30 $168.06 $5,041.80 $202.85 $6,085.50 $58.17 +21.9
NVDA 31.3 40 $236.64 $9,465.60 $908.88 $36,355.20 $6.40 +284.1
AAPL 7.4 50 $30.43 $1,521.50 $171.13 $8,556.50 $494.44 +494.9
COST 12.6 20 $344.27 $6,885.40 $734.20 $14,684.00 $744.80 +124.1
GIB.A 9.6 70 $140.51 $9,835.70 $159.66 $11,176.20 $0 +13.6
Cash 0.9     $727.81   $1,019.24    
Total 100.0     $35,428.69   $116,188.84 $2,329.16 +234.5
Inception       $10,000.00       +1,085.

Comments: This was a stunning six months. The portfolio gained 30.6% in that period, led by a huge contribution from Nvidia, which was up over $400 per share, riding the AI wave.

But Nvidia wasn’t the only contributor. All the securities but one were up during the period, with Costco adding over $200, including the $15 special dividend. We also saw large contributions from Alimentation Couche-Tard, WSP Global, TFI International, and CGI. The only disappointment was Apple, which is facing headwinds on several fronts.

The total value of the portfolio (market price plus retained distributions) now stands at $118,518. Over the 11.5 years since this portfolio was launched, we have a cumulative return of 1,085%. That’s an average annual compound growth rate of 24%.

Changes: Apple has been good to us, but the company is facing a lot of problems, not least of which is the loss of market share in China. This is a dynamic portfolio; we don’t wait around until companies can sort out their difficulties. There are too many other good opportunities.

As a result, we’ll sell our position in Apple for a total of $9,050.94, including retained earnings.

We’ll replace it with Novo Nordisk (NYSE: NVO), the Danish pharmaceutical company that manufactures Ozempic, the diabetes/weight loss drug that is in huge demand world-wide. The stock was recommended by contributing editor Adam Mayers on Oct. 16, 2023, at US$102.14. It closed on March 13 at US$133.49, up 30.7% from the original recommendation. We’ll buy 70 shares for $9,344.30. We’ll take $293.36 from cash to make up the difference.

All else stays the same. There is a temptation to sell off some of Nvidia, which now has a portfolio weighting of more than 31%. But the stock is hot right now and in a portfolio of this type, the best strategy is to ride your winners until they run of steam.

Our total cash plus retained earnings is now $2,560.60. We will stay with Duca Credit Union, which continues to offer a high interest rate of 5.25%, with no minimum requirement.

Here’s a look at the revised portfolio. I will review it again in August.

IWB Growth Portfolio (revised March 13/24)

Symbol Weight

%

Total

Shares

Average

Price

Book

Value

Current

Price

Market

Value

Retained

Distributions

ITA 5.4 50 $107.42 $5,371.00 $126.96 $6,348.00 $111.75
ATD 10.0 140 $8.32 $1,164.10 $83.48 $11,687.20 $379.49
WSP 17.4 90 $27.00 $2,430.29 $225.30 $20,277.00 $534.11
TFII 5.2 30 $168.06 $5,041.80 $202.85 $6,085.50 $58.17
NVDA 31.2 40 $236.64 $9,465.60 $908.88 $36,355.20 $6.40
NVO 8.0 70 $133.49 $9,344.30 $133.49 $9,344.30 $0
COST 12.6 20 $344.27 $6,885.40 $734.20 $14,684.00 $744.80
GIB.A 9.6 70 $140.51 $9,835.70 $159.66 $11,176.20 $0
Cash 0.6     $725.88   $725.88  
Total 100.0     $50,264.07   $116,683.28 $1,834.72
Inception       $10,000.00      

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