Contents
This FFJ Portfolio - June 2023 report is an overview of my recent investment activity.
The value of the holdings within the FFJ Portfolio has increased by ~$61,913 CDN and ~$976,431 USD relative to June 2022. The increase is attributed to my concerted effort to increase my exposure to high-quality US companies. Secondly, the share price of many of my holdings has surged of late. In many cases, I think valuations are somewhat rich. However, I invest for the very long term and have little interest in crystalizing my gains as this triggers tax implications I wish to avoid.
While trying to identify attractively valued companies has become increasingly difficult of late, I did increase my exposure to 6 companies (see below).
In addition, I continue to automatically reinvest dividend income.
Purchases In The FFJ Portfolio
In June, I made the following purchases in the FFJ Portfolio.
Intact Financial (IFC.to)
In my June 2 post, I disclose the addition of 50 shares @ $197.94 in a 'Core' account within the FFJ Portfolio bringing my exposure to 311 shares in that account. I also hold additional shares in an account for which I do not disclose details.
Agilent Technologies (A)
On May 10, I initiated a 200-share position @ ~$127/share in one of the 'Core' accounts and disclosed this purchase in this post. I added to my exposure on June 9 with the purchase of 100 shares @ ~$115.96 and now hold 300 shares in a 'Core' account. I did not create a post to disclose this additional purchase.
Nasdaq (NDAQ)
NDAQ announced on June 12 that it entered into a definitive agreement to acquire Adenza from Thoma Bravo for $10.5B in cash and shares of common stock. In this June 13 post, I disclose my decision to initiate a position with the purchase of 500 NDAQ shares @ ~$51/share in a 'Core' account.
Thermo Fisher Scientific (TMO)
In this May 19 post, I disclose the purchase of 52 shares @ ~$515/share within one of the 'Core' accounts within the FFJ Portfolio.
TMO subsequently held its 2023 Investor Day on May 24. After listening to management's outlook, I acquired an additional 25 shares @ ~$507/share in another 'Core' account within the FFJ Portfolio. I disclose this purchase in this post.
On June 27, I acquired another 50 shares in a 'Core' account @ ~$510.70/share bringing my total TMO exposure to 127 shares. I did not create a post to disclose this additional purchase.
Brookfield Asset Management (BAM.to) and Brookfield Corporation (BN.to)
On June 28, I acquired the following additional shares in a 'Core' account:
- BAM.to - 100 shares @ $42.83 bringing my total exposure to 527 shares in a 'Core' account and 153 shares in a 'Side' account.
- BN.to - 100 shares @ $42.51 bringing my total exposure to 1,515 shares in a 'Core' account and 608 shares in a 'Side' account.
I did not create a post to disclose this additional purchase.
I also have exposure to:
- Brookfield Infrastructure Partners
- Brookfield Infrastructure Corporation
- Brookfield Renewable Partners
- Brookfield Renewable Corporation
My exposure to Brookfield Business Partners and Brookfield Reinsurance is currently negligible.
Dividend Income
I base my investment decisions on risk, valuation, and long-term total potential return. Dividend metrics are of lesser importance. Nevertheless, I do track dividend income.
The income from the holdings within the FFJ Portfolio is accessible here.
During June, the holdings within the FFJ Portfolio generated:
- 'Core' accounts: ~$2,188 CDN and ~$6,610 USD
- 'Side' accounts: ~$2,219 CDN and ~$3,420 USD
YTD dividend income is:
- Core' accounts: ~$11,126 CDN and ~$20,555 USD
- 'Side' accounts: ~$12,829 CDN and ~$12,567 USD
I received dividend income from the following companies in the FFJ Portfolio and retirement accounts for which I do not disclose details.
- Becton Dickinson (BDX)
- Blackrock (BLK)
- Chevron (CVX)
- Church & Dwight (CHD)
- CME Group (CME)
- Emerson Electric (EMR)
- Exxon Mobil (XOM)
- Fortive Corporation (FTV)
- Home Depot (HD)
- Intercontinental Exchange (ICE)
- Johnson &Johnson (JNJ)
- Lockheed Martin (LMT)
- McDonald's (MCD)
- Microsoft (MSFT)
- Moody's (MCO)
- Otis Worldwide (OTIS)
- Pepsico (PEP)
- Raytheon Technologies (RTX)
- Rollins (ROL)
- S&P Global (SPGI)
- Union Pacific (UNP)
- United Parcel Services (UPS)
- Visa (V)
- Brookfield Asset Management (BAM.to)
- Brookfield Corporation (BN.to)
- Brookfield Infrastructure Partners (BIP-un.to)
- Brookfield Infrastructure Corporation (BIPC.to)
- Brookfield Renewable Corporation (BEPC.to)
- Brookfield Renewable Partners (BEP-un.to)
- Canadian National Railway (CNR.to)
- Intact Financial (IFC.to)
- Enbridge (ENB.to)
- SMART Centres Real Estate Investment Trust (SRU-UN.to)
Holdings
The monthly FFJ Portfolio holdings dating back to December 2018 are accessible here.
The following are the monthly values of the FFJ Portfolio over the past several months.
January 2022
Core Accounts: ~$773,000 CDN and ~$1,858,000 USD
Side Accounts: ~$666,000 CDN and ~$1,475,000 USD
Total: ~$1,439,000 CDN and ~$3,333,000 USD
February 2022
Core Accounts: ~$778,000 CDN and ~$2,014,000 USD
Side Accounts: ~$672,000 CDN and ~$1,465,000 USD
Total: ~$1,450,000 CDN and ~$3,479,000 USD
March 2022
Core Accounts: ~$810,000 CDN and ~$2,118,000 USD
Side Accounts: ~$696,000 CDN and ~$1,554,000 USD
Total: ~$1,506,000 CDN and ~$3,672,000 USD
April 2022
Core Accounts: ~$770,332 CDN and ~$2,026,487 USD
Side Accounts: ~$658,363 CDN and ~$1,514,137 USD
Total: ~$1,428,695 CDN and ~$3,540,624 USD
May 2022
Core Accounts: ~$784,833 CDN and ~$2,133,728 USD
Side Accounts: ~$661,080 CDN and ~$1,499,998 USD
Total: ~$1,445,913 CDN and ~$3,633,726 USD
June 2022
Core Accounts: ~$742,473 CDN and ~$2,006,645 USD
Side Accounts: ~$595,911 CDN and ~$1,401,823 USD
Total: ~$1,338,384 CDN and ~$3,408,468 USD
July 2022
Core Accounts: ~$794,405 CDN and ~$2,230,466 USD
Side Accounts: ~$644,255 CDN and ~$1,539,292 USD
Total: ~$1,438,660 CDN and ~$3,769,758 USD
August 2022
Core Accounts: ~$740,560 CDN and ~$2,064,323 USD
Side Accounts: ~$637,547 CDN and ~$1,478,073 USD
Total: ~$1,378,107 CDN and ~$3,542,396 USD
September 2022
Core Accounts: ~$707,781 CDN and ~$1,894,989 USD
Side Accounts: ~$612,394 CDN and ~$1,311,542 USD
Total: ~$1,320,175 CDN and ~$3,206,531 USD
October 2022
Core Accounts: ~$740,555 CDN and ~$2,160,153 USD
Side Accounts: ~$624,677 CDN and ~$1,441,483 USD
Total: ~$1,365,232 CDN and ~$3,601,636 USD
November 2022
Core Accounts: ~$785,647 CDN and ~$2,311,806 USD
Side Accounts: ~$653,367 CDN and ~$1,516,013 USD
Total: ~$1,439,014 CDN and ~$3,827,819 USD
December 2022
Core Accounts: ~$737,157 CDN and ~$2,271,705 USD
Side Accounts: ~$602,514 CDN and ~$1,438,680 USD
Total: ~$1,339,671 CDN and ~$3,710,385 USD
January 2023
Core Accounts: ~$775,787 CDN and ~$2,387,269 USD
Side Accounts: ~$642,451 CDN and ~$1,520,472 USD
Total: ~$1,418,238 CDN and ~$3,907,741 USD
February 2023
Core Accounts: ~$757,627 CDN and ~$2,283,481 USD
Side Accounts: ~$634,210 CDN and ~$1,474,168 USD
Total: ~$1,391,837 CDN and ~$3,757,649 USD
March 2023
Core Accounts: ~$747,355 CDN and ~$2,385,759 USD
Side Accounts: ~$628,335 CDN and ~$1,532,785 USD
Total: ~$1,375,690 CDN and ~$3,918,544 USD
April 2023
Core Accounts: ~$768,494 CDN and ~$2,506,613 USD
Side Accounts: ~$638,604 CDN and ~$1,527,968 USD
Total: ~$1,407,098 CDN and ~$4,034,581 USD
May 2023
Core Accounts: ~$726,443 CDN and ~$2,536,273 USD
Side Accounts: ~$613,517 CDN and ~$1,480,114 USD
Total: ~$1,339,960 CDN and ~$4,016,387 USD
June 2023
Core Accounts: ~$769,378 CDN and ~$2,773,868 USD
Side Accounts: ~$630,919 CDN and ~$1,611,031 USD
Total: ~$1,400,297 CDN and ~$4,384,899 USD
NOTE: The above values exclude investments in several tax-efficient accounts for which I do not disclose details.
Final Thoughts
While I try to invest in great companies that have temporarily fallen out of favour, share price behaviour is not the basis upon which I make investment decisions.
When analyzing a company, I:
- try to understand the business;
- look at the key financial characteristics;
- determine whether the company has the wherewithal to withstand severe temporary adversity;
- try to determine senior management's quality and competency;
- determine if senior management's compensation structure is aligned with shareholder interests;
- try to assess some external threats that could jeopardize a company; and
- gauge the company's valuation.
In many cases, I easily eliminate some companies because I am extremely reluctant to invest in a company whose credit risk is, or is close to, non-investment grade.
That's it for now.
I wish you much success on your journey to financial freedom.
Note: Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I do not know your circumstances and am not providing individualized advice or recommendations. I encourage you to make all investment decisions through research and due diligence. You should also consult your financial advisor where appropriate.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.
