Wednesday, February 1, 2012
Freedom Fund Update - February 2012
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.
I feel extremely fortunate and thankful that I'm able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.
The market correction I figured was just around the corner has not yet come to pass. The S&P 500 is up 4.36% since the beginning of the year, which is a pretty strong performance considering the markets ended the year on a pretty strong run. Because I lack the ability to forecast the future, I don't base my purchases on what I think is going to happen. I continue to purchase attractive equities every single month, as evidenced by my latest purchases. That's just part of my dividend mantra. I like to build my dividend growth machine one month at a time.
I made a few changes to the Freedom Fund since the last update. I purchased shares with Philip Morris International (PM), which is now my largest holding. I also purchased shares with Norfolk Southern Corp. (NSC), a new holding of mine. I look forward to the dividends and dividend growth that these two holdings will provide my fund.
The current market value of the Freedom Fund now stands at $57,730.84. This is a large increase since my last published value of $54,852.73. This increase is due to my recent purchases with fresh capital, as well as dividends received. The strong markets have also helped push the value of the fund up.
I'm currently invested in 24 positions. This is an increase since last month, when I was invested in 23 positions. This increase is due to a new position I opened in NSC.
Another fantastic month, and another month where I can sit back and realize how fortunate I am to continue to be employed in a down economy and contribute fresh capital toward investments. At a time when some people are struggling to put food on the table, I'm lucky enough to be able to save 60%+ of my net income and invest the difference. I'm fully aware of that, and extremely thankful. I'm starting off the year fantastically, but I am hoping for a market correction. Although that would bring the value of my fund down, it would provide me better entry points for future investments. I'll keep my fingers crossed.
How are your portfolios doing?
Thanks for reading.