Freedom Fund Update – December 2011

Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from working at a job I don’t enjoy to purchase goods I don’t need to impress neighbors I don’t care about.

With the S&P experiencing a late year-end rally as Santa brings Wall Street cheer and joy, my portfolio has responded in kind. In the end, I’d actually prefer a flat market for the next 10 years as I am currently in accumulation mode; I’m a net buyer of stocks. I may be in the minority with my opinions, but a larger brokerage account only serves to make my net worth statement look better. When a market is up I can purchase less shares with my reinvested dividends and fresh capital. I’m hoping for a market downdraft before the end of the year!

I made a few changes to the Freedom Fund over the course of November. I made three purchases, and all were new positions for me. I initiated stakes in General Dynamics Corporation (GD), Medtronic, Inc. (MDT) and Vodafone Group PLC (VOD) (ADR). I’m excited about these new positions and the diversity and quality they bring to my portfolio. I think all three are strong businesses, and leaders in their respective industries.

The current market value of the Freedom Fund stands at $51,379.60. This is a nice increase since the last published value of $47,169.26. This increase is mostly due to my recent purchases.

I’m invested in 21 positions total. I have not sold any equities in the last month.

Overall, I’m excited to post this update and I’m looking forward to what the market will give us in 2012. I think my portfolio is really starting to take shape in terms of diversification and quality. I’m just giddy over the fact that I crossed the $50,000 mark before the end of 2011. I had a little goal in my head to cross the $50k mark before the end of the year, and with purchases coming up in December I’ll be well over that. Although the value of my portfolio doesn’t matter as much to my financial independence as the dividends and passive income do, it’s still nice to see myself building positions and expanding on my overall wealth.

This will be my last Freedom Fund update for 2011, as the purchases I make in December will be reflected on my next update in early 2012. It’s been a wonderful ride, and I thank everyone for their support!

I hope all my readers are experiencing progress with their individual portfolios. I wish you all continued success!

Full Disclosure: I’m long MDT, GD, VOD.

Thanks for reading.

Comments

  1. MySavingStyle says

    Congratulations! I had a similar feeling of joy when my 401k broke 6 figures. However I don’t actively manage that, as it’s through my company, is all funds and has broker fees, ugh!

    Now I’m working on my own dividend portfolio, slowly and surely.

    How do you feel about MCD? I see we both hold it, I just don’t know how high it can go. I appreciated your post about when to sell. I’m still uncertain at times.

    Happy end of year!

  2. Westphalian says

    Great progress, DM!
    My dividend-machine is also running very well.
    It already paid tax, insurance and repairs for my car, so I have money left from my regular income to invest.
    I just wish I started dividend investing some years ago.

    Keep on blogging the way you do, I really enjoy reading your blog everyday.

    Greets from Germany!

  3. says

    Good call on Medtronic. I’m also initiating a position on Medtronic in January. I’m at about 25K so far and hope to inch closer to 50K by next December. Sounds like you are about 1 year ahead of me, keep up the good work!

  4. says

    MySavingStyle,

    Thanks!

    Yeah, I can imagine how great it would feel to hit that 6-figure mark! Must be really incredible. I’m hoping to have the Freedom Fund cross that mark sometime late 2013.

    On MCD, I’m still holding and I don’t think it’s going to dip too low any time soon to buy more. This is one that just kept running away from me, similar to KO. You pay for quality, and that’s true for this exceptionally well-run company. I’m holding and will buy on dips.

    Best wishes!

  5. says

    Westphalian,

    Great to hear from you. I’m glad to hear your dividend machine is still running strong and staying oiled! Also good to hear that it’s paying for major expenses. It feels good to keep humming along whenever life throws you a pothole, knowing that you can pay for that hole with dividends. Good stuff!

    Stay in touch! Take care.

  6. says

    Henry,

    Thanks!

    Yes, I think the Freedom Fund will cross the $100k mark before the end of 2013 if I can keep this pace up. I’m very excited to see where I end this year and hopefully 2012 brings me success.

    Best regards.

  7. says

    $25000 Dividends,

    Thanks for your support. I’m anxious to see how both of our journeys transpire.

    It seems I am about a year ahead of you. I grew my portfolio by about $30k or so this year, so you’ll catch up!

    Keep it up. Best wishes!

  8. says

    Hi DM,

    Great to see your portfolio cross the 50k mark. Wait till you cross the 100k mark. I remember I felt a huge sense of achievement and pride when I crossed the 100k line (in sing dollars) back in June.

    However, I started to feel a little “scared”. It was a weird feeling. I realized that I invested mainly in local Singapore stocks. My tiny country is very vulnerable to global macroeconomic conditions.

    So, my Singapore Portfolio kinda stagnate and I started buying US stocks last month. Now, I am looking forward to dividends from Johnson & Johnson and Coca Cola. Feeling pretty excited to be receiving dividends from companies which products I had purchased ever since I was a kid. I can still remember the classic Christmas TV commercials from Coca Cola. Luv the polar bears. ^^

  9. says

    DW,

    Thanks for stopping by!

    Congratulations on that big achievement! You’re doing really great. Also, good move on expanding your holdings into global multinational companies like Coca-Cola and J&J. Excellent choices there.

    What’s your goal with your portfolio? Additional income? Retire early? Flexibility?

    Thanks for the encouragement. Keep up your great work!

  10. says

    Mantra,

    Holy cow! It just seems like yesterday you were crossing the $40k mark. Nicely done Mantra! My dividend portfolio has stagnated and I am not happy about it at all. I have $6k on the sidelines that I won’t be able to put to work in the market. $3k is for my Christmas Philippines vacation and the other $3k I am applying towards my auto loan. I’m so close to paying off that loan I can taste it. I will save interest by paying down my auto loan faster, so technically I did make some gains.

    I also did some heavy end-of-year adjusting to my portfolio. When I first started on my dividend journey, I got blinded by yield and took some unnecessary risks. I bought AGNC, a mortgage reit for the insane yield that didn’t fair well, but luckily the dividend payments helped me break even. I dumped all of my funds and am now picking individual stocks. I hate the control you lose when your in a fund, not to mention the management fees.

    I’m wishing you luck in 2012!

    DPS

  11. says

    DPS,

    Thanks for stopping by. I appreciate the encouragement and well wishes!

    I hear you on getting blinded by yield. So far, the only time I’ve really “chased yield” was with TEF. Although, that was before the euro zone crisis got out of hand and it also wasn’t yielding as high as it is now. So, it’s a bit of an accidental high-yielder in that regard.

    Good luck on paying off the auto loan. I know it felt great when I got rid of my auto loan and car earlier this year. Huge weight lifted from my shoulders.

    Have fun on your Philippines vacation. I know I’d love to visit SE Asia at some point to see if it’s a viable retirement destination for myself. Happy holidays!

    Best wishes.

  12. Earl says

    Thanks for your blog. I’m just starting out in the investment game. I’ve bought: F, SLF, CNQ, AFL, PFE,KFT,and SNC. Looking forward for more advice

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