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 a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about. This journey is all about freedom and flexibility. One day the dividend income this portfolio generates will fully replace my day job’s income and my time will be completely my own. What could you possibly want to own more than your time?
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.
It’s important to keep in mind that while updating the overall value of my portfolio is important for historical reference and for purposes of keeping track of total return, my main focus is on the rising dividend income stream the Fund provides.
The Fund was relatively quiet during the month of November. I remain cautious about the valuation of individual securities, and attractive opportunities mostly evade me. I continue to pick my spots carefully while also remaining vigilant on keeping my perspective long-term in nature. I initiated a position in Target Corporation (TGT) mid-month, although this purchase was ill-timed as the stock fell a bit shortly after 3Q numbers were released showing a big drop in net income and reduced guidance. I wasn’t particularly surprised by this, as my analysis showed the numbers were likely going to be choppy over the next year or so as expensive expansion plans take their toll. I still like TGT for the long haul here, however. I had no sales during the month of November, as selling infrequently is my modus operandi.
The current market value of the Freedom Fund stands at $143,198.49. This is an increase of 1.8% over last month’s published value of $140,603.90. The market’s strong performance has lifted the general tide, and certainly my boat as well. However, I’m hoping for more shallow waters in the near future which would allow my current capital to buy more shares for the same amount of money, which means more dividends and a greater compounding effect over the long term.
I’m currently invested in 43 positions. This is an increase from last month, as my investment in Target Corporation (TGT) is new.
These updates are mainly designed to show the increase in the value of the underlying equities I’m invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So with that said I don’t put too much emphasis on these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one’s securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren’t, and from there I can make educated decisions (based on further due diligence) on which stocks I’d like to add fresh capital to (while considering portfolio weight as well).
Full Disclosure: Long TGT
How about you? Have a great November? Make any big purchases?
Thanks for reading.
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