FFJ Portfolio – October 2023

This FFJ Portfolio - October 2023 report is an overview of my recent investment activity.

Fortunately, we have recently experienced a broad pullback which has resulted in an improvement in the valuation of many companies. Some investors may be disheartened by a drop in the value of their investment holdings. We must remember, however, that we have an ownership interest in companies. Investments should, therefore, be made from a long-term perspective. Investing based on a company's stock price is not investing!

Despite a surge in the number of companies that have recently become attractively valued, I have had to drastically curtail my purchases since I am accumulating capital for other purposes. As a result, I made only one very small purchase in the month of October. The automatic reinvestment of dividend income, however, resulted in the addition of shares to some of my existing positions; a list of the companies from which I received dividend income in October is reflected below.

Purchases

In October, I purchased the following:

Genuine Parts (GPC)

In my October 20 post, I disclosed the purchase of a few additional shares @ $130.61/share bringing my GPC exposure to 465 shares in a 'Core' account within the FFJ Portfolio.

Sales

Veralto (VLTO)

In my October 25 Danaher post, I disclosed that in conjunction with the VLTO spin-off from Danaher, I received 148 VLTO shares at an average cost of ~$77.22. Since I had no intention of increasing my exposure, I exited this position on October 25.

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 October, the holdings within the FFJ Portfolio generated:

• 'Core' accounts: ~$2,544 CDN and ~$1,311 USD
• 'Side' accounts: ~$2,853 CDN and ~$1,059 USD

YTD dividend income is:

• Core' accounts: ~$19,427 CDN and ~$32,249 USD
• 'Side' accounts: ~$22,531 CDN and ~$19,244 USD

In comparison, in 2022 the holdings within the FFJ Portfolio generated:

• 'Core' accounts: ~$21,103 CDN and ~$36,392 USD
• 'Side' accounts: ~$23,702 CDN and ~$20,742 USD
• Total: ~$44,805 CDN and ~$57,134 USD

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

• Agilent Technologies (A)
• Automatic Data Processing (ADP)
• Broadridge (BR)
• Danaher (DHR)
• Diageo (DEO)
• Ecolab (ECL)
• FedEx (FDX)
• Genuine Parts (GPC)
• Merck (MRK)
• Nike (NKE)
• The Coca-Cola Company (KO)
• Thermo Fisher (TMO)
• TotalEnergies (TTE)
• BCE Inc. (BCE.to)
• SMART Centres Real Estate Investment Trust (SRU-UN.to)
• The Bank of Nova Scotia (BNS.to)
• The Canadian Imperial Bank of Commerce (CM.to)
• The Toronto-Dominion Bank (TD.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

July 2023

Core Accounts:  ~$769,720 CDN and ~$2,884,064 USD

Side Accounts:  ~$641,331 CDN and ~$1,670,716 USD

Total:  ~$1,411,051 CDN and  ~$4,554,780 USD

August 2023

Core Accounts:  ~$742,952 CDN and ~$3,037,143 USD

Side Accounts:  ~$619,549 CDN and ~$1,658,762 USD

Total:  ~$1,362,501 CDN and  ~$4,695,905 USD

September 2023

Core Accounts:  ~$722,627 CDN and ~$3,001,498 USD

Side Accounts:  ~$596,498 CDN and ~$1,584,096 USD

Total:  ~$1,319,125 CDN and  ~$4,585,594 USD

October 2023

Core Accounts:  ~$695,571 CDN and ~$2,868,375 USD

Side Accounts:  ~$576,003 CDN and ~$1,529,009 USD

Total:  ~$1,271,574 CDN and  ~$4,397,384 USD

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

Although I have had to curtail my purchases at the most inopportune time, I take comfort that some of the companies in which I have invested are taking advantage of the current market conditions to repurchase drastically undervalued shares.

In my recent RTX Trades At A Significant Discount to Intrinsic Value post, I touch upon the company's decision to enter into a $10B accelerated share repurchase arrangement given the disconnect between its share price and intrinsic value.

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.