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.
The markets have been extremely resilient lately. I think investors are a little too optimistic about the overall state of the economy and some of the sovereign debt issues. This could mean that there is a market correction just around the corner, which would be more than welcome by me. I always look forward to corrections as a value investor, as that gives me the opportunity to purchase more shares for my money.
I made a few key changes to the Freedom Fund since my last update. I sold all my Telefonica S.A. (TEF) (ADR) holdings, due to what I thought was an unsustainable dividend–which later turned out to be an extremely accurate prediction as the dividend was cut less than a week after I sold. I used capital from that sale, as well as fresh capital from my paycheck and dividends to purchase shares with Emerson Electric Co. (EMR), Illinois Tool Works Inc. (ITW) and AT&T Inc. (T). I’m extremely pleased with these purchases, and all three are new positions to the Freedom Fund. EMR is down quite a bit since I purchased, which may open an opportunity to average down on that position to lower my cost basis.
The current market value of the Freedom Fund stands at $54,852.73. This is a sizable increase from the last published value of $51,379.60. This increase is due to my recent purchases, as well as strength in the markets.
I’m invested in 23 positions. This is an increase since last month, when I was invested in 21 positions. This is due to my purchases of T, EMR and ITW and the sale of TEF.
Another great month for the Freedom Fund. I directed the sale of a weak stock, and initiated positions with three strong companies. The market value continues to increase due to my aggressive purchasing during both up and down markets. It’s great to start off 2012 with almost $55,000 in equities, as that gives me a great point to start from and build onto. I’m looking forward to aggressively adding to the fund monthly, as long as capital and opportunities present themselves.
How are your portfolios doing? Starting off 2012 on the right foot?
Full Disclosure: I’m long ITW, EMR, T.
Thanks for reading.