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Thursday, March 1, 2018

Portfolio Update - February 2018

February was a brutal month for investors and even as I write this post the market continues its trend downward. However, I'm a long term investor and this is just short term noise. It actually prevents some great buying opportunities and I don't mind when the market is down. If I can invest during periods of weakness then I can increase my purchasing power. 

This will all lead to me being able to retire even earlier than expected. I welcome market weakness because I don't plan on selling stocks and dividends and price are inversely correlated. When the price goes down the dividend goes up!

This month I saw my net worth decrease by $7,527.52 or -3.70%

This is all due to the market having a rough month and the value of my stocks decreasing. I'm hoping to deploy some fresh capital (about $2k) in the market this month and hopefully I can capitalize on the market weakness. 

On February 6th, 2018 I was able to purchase 13 shares of AFLAC Incorporated (AFL) for $83.90 a share. This was a day when the market was down and I believe this was a good price for a great dividend company. They have been on my radar forever and I decided to pull the trigger to add this great company to my collection. Overall, this will increase my yearly dividend income by $27.04

This was my first month ever that I've seen my net worth actually decrease. It is hard to see your money decrease, but I can't complain given that it has steadily increased for the past 4 years now. I look forward to investing while the market is down and capitalizing on the current weakness. Even if the market continues to fall I will just continue to buy!

Let me know what you guys think! How did you guys do in February?

2 comments:

  1. Way to take advantage of the price decline MD. With a long term horizon, the volatility in the market is indeed noise as you said. I think a lot of people saw their overall portfolio decline because of the volatility but it only matters if you sell. For those of us with a long time horizon, let's hope we can continue to pick up stocks at cheaper valuations.

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    1. Agreed! I really don't care about the value of my portfolio as long as the companies I'm holding are solid dividend growers. If they continue to pay and grow dividends then that's all I care about. It can be hard to see the value of your portfolio decrease, but picking up shares at cheaper prices will only benefit you in the long term. Even if the market never went back up to the record highs it achieved, you would end up averaging down and still doing very well.

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