Author: Bob Freedland
Covestor model: Buy and Hold Value
The Buy and Hold Value model on Covestor had a relatively flat month in performance relative to the market but has been a steady performer over the last year.
I continue to try to aggressively limit losses and identify the best long-term opportunities available in equities.
Being an absolute Apple (AAPL) fanatic, I found it difficult to stay away from this stock and once again took a position early in the month of August, purchasing a few shares at $634.52. Apple closed the month just under that price but moved higher as the market moved into September.
My position in Abbott (ABT) was closed out when the position showed weakness after an earlier purchase. I also closed out Church & Dwight (CHD) on a quarterly report that missed expectations. (Early in September I re-established a position as the stock showed strength and I am a long-term fan of this company.)
Both Hain (HAIN) and Coca-Cola (KO) were closed out after demonstrating price weakness. I traded in and out of Liquidity Services (LQDT) ending the month with a position in this stock that has been a good holding for me in the past.
Similarly I closed out my position in McDonald's (MCD) on weakness but hopefully will find a re-entry point in the future as like Apple (AAPL), this is a franchise that I would like to hold on to longer-term.
Three new holdings for this portfolio include fast-growing Solarwinds (SWI), Skyworks (SWKS), and Transdigm (TDG). These companies have been very strong recently and replaced some of the weaker stocks with better known names in the portfolio.
The philosophy behind this model remains unchanged. I am looking for companies with strong price and earnings momentum and am trying to aggressively limit losses on stock purchases. I look to build a portfolio of up to 20 positions but am prepared to move into cash as the market dictates. I am satisfied with the composition of the portfolio, its long-term performance, and the strategy.
Hopefully, this will allow this model to continue to show consistent appreciation over the longer term.
Disclosure: Performance discussed is net of advisory fees. Also, any investments discussed in this presentation are for illustrative purposes only and there is no assurance that the adviser will make any investments with the same or similar characteristics as any investments presented. The investments are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, the reader should not assume that any investments identified were or will be profitable or that any investment recommendations or that investment decisions we make in the future will be profitable.