FFJ Portfolio - November 2022 Report

This brief FFJ Portfolio - November 2022 Report recaps what occurred with this investment portfolio during the month.

Looking for attractively valued companies was like shooting fish in a barrel in late September/early October. Unfortunately, the tide turned after this timeframe thereby making it more difficult to identify attractive investment opportunities.

New Positions

I have monitored West Pharmaceutical (WST) for the past few years and have deemed it to be perpetually overvalued. Recently, however, it has become undervalued thus prompting me to initiate a 100 share position @ ~$225/share in one of the 'Core' accounts in the FFJ Portfolio; I disclose this purchase in my November 25 post.

Additions

In my November 14 post CME post, I conclude that shares are attractively valued. On November 28 I acquired an additional 50 shares @ ~$173.58 in a 'Core' account within the FFJ Portfolio bringing my CME exposure in that particular account to 432 shares; another 321 shares are held in a 'Side' account within the FFJ Portfolio.

Divestitures

None.

Dividend Income

The months of February, May, August, and November are the 4 months in the year in which I receive the least dividend income.

In November, I received dividend income from the following companies in accounts included in the FFJ Portfolio and in retirement accounts for which I do not disclose details.

  • Abbvie (ABBV)
  • Apple (APPL)
  • Blackstone (BX)
  • Carrier Global Corporation (CARR)
  • Hormel Foods (HRL)
  • Mastercard (MA)
  • Paychex (PAYX)
  • Emera (EMA.to)
  • SMART Centres Real Estate Investment Trust (SRU-UN.to)
  • The Bank of Montreal (BMO.to)
  • The Royal Bank of Canada (RY.to)

Dividend Income

The income from the holdings within the FFJ Portfolio is accessible here.

During November, the holdings within the FFJ Portfolio generated the following dividend income:

  • 'Core' accounts: ~$1,797 CDN and ~$1,766 USD
  • 'Side' accounts: ~$1,360 CDN and ~$751 USD.

YTD dividend income is:

  • 'Core' accounts: ~$19,158 CDN and ~$30,607 USD
  • 'Side' accounts: ~$21,484 CDN and ~$17,309 USD
  • YTD total: ~$40,642 CDN and ~$47,916 USD

Holdings

The January - November 2022 FFJ Portfolios are accessible here. The following is a recap of the monthly portfolio totals:

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

NOTE: The above values exclude investments in several tax-efficient accounts for which I do not disclose details.

Final Thoughts

Several holdings within the FFJ Portfolio have experienced a remarkable fluctuation in value over the first 11 months of 2022. The companies themselves, however, have not materially changed during this same timeframe. This is why it is extremely important to focus on a company's underlying fundamentals rather than on share price behaviour.

I think we are once again witnessing an element of irrational exuberance and recommend caution. As mentioned in several posts, I have read multiple earnings transcripts of late. On just about every earnings call with analysts, senior management at the companies I follow has expressed apprehension about 2023. Given their outlook, I suggest you be very cautious when acquiring shares. Just because a company's share price is well off its 52-week high does not make it a 'buy'.

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 not to make any investment decisions without conducting your research and due diligence. You should also consult your financial advisor about your specific situation.

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.