I last performed an Investment Holdings Review in this early January 2022 post. Subsequently, market conditions have radically changed. In addition, I have exited a few positions and have increased my exposure to several companies.
My underlying reason for performing these periodic reviews is that I hold shares of many companies in a few different accounts. For example, shares in my top 3 holdings (Visa - V, Mastercard - MA, and Chevron - CVX) as of June 30, 2022, are held in 4 different accounts. Unless I undertake such a review I can not determine with any degree of accuracy my exposure to each holding.
The rankings as of June 30, 2022, January 6, 2022, April 11, 2021, and August 14, 2020 are accessible in this Investment Holdings Review.
A blank cell for a particular holding at the time of the review means the holding was not within the top 30.
I exited 3 holdings (3M - MMM, Stanley Black & Decker - SWK, and W.W. Grainger - GWW) that were once within the top 30; I sold shares in SWK and GWW in October 2020 for tax planning reasons.
GWW is the only company of the three that I regret not having repurchased shares. As for MMM, my reasons for exiting this position are presented in my 3M: This Dividend King Is A Train Wreck post. In addition, I explain why investors may want to Pass On Stanley Black and Decker.
I hold Canadian and US shares. My base currency is the Canadian dollar, and therefore, I convert my US holdings to ascertain the value of my holdings in one currency. The foreign exchange conversion rates I have used at the time of my reviews are:
- June 30, 2022: $1.2873 CDN = $1 USD
- January 6, 2022: $1.2731 CDN = $1 USD
- April 11, 2021: $1.2545 CDN = $1 USD
- August 14, 2020: $1.34 CDN = $1 USD
The weighting of our top 30 holdings at the time of each review is:
- June 30, 2022: ~75%
- January 6, 2022: ~80%
- April 11, 2021: ~77%
- August 14, 2020: ~77%
These are the weightings of our top 10 holdings.
- June 30, 2022: ~37%
- January 6, 2022: ~43%
- April 11, 2021: ~41%
- August 14, 2020: ~43%
The weighting of our top 11 - 20 holdings has remained relatively steady.
- June 30, 2022: ~22%
- January 6, 2022: ~22%
- April 11, 2021: ~22%
- August 14, 2020: ~20%
The weighting of our top 21 - 30 holdings has risen slightly.
- June 30, 2022: ~16%
- January 6, 2022: ~15%
- April 11, 2021: ~14%
- August 14, 2020: ~14%
The majority of the shares in our largest holding (V) are held in an account for which I do not disclose details. The weighting of this investment is:
- June 30, 2022: ~7%
- January 6, 2022: ~7.4%
- April 11, 2021: ~7.88%
- August 14, 2020: ~8.35%
The weighting of our 30th largest holding at the time of each review is:
- June 30, 2022: ~1.4%
- January 6, 2022: ~1%
- April 11, 2021: ~1.1%
- August 14, 2020: ~1.1%
Dividend Income and Dividend Yield
I track the monthly dividend income from all our holdings but only disclose the dividend income generated from the holdings within the FFJ Portfolio. Dividend income and dividend yield, however, are not the basis upon which I make investment decisions. My focus is on an investment's total potential long-term investment return.
Some of my top 30 holdings have a sub-2% dividend yield and 2 (Berkshire Hathaway and Intuitive Surgical) distribute no dividend. In addition, some holdings that do not fall within the top 30 also have a razor-thin dividend yield.
I conduct Investment Holdings Reviews so I can determine the weighting of each holding and make adjustments accordingly.
The value of many of my holdings has dropped in recent months. The quality of each holding, however, is such that I am not concerned. The companies are profitable and generate strong free cash flow and I am confident they can weather challenging business conditions. Given this, I do not look to exit positions during market downturns but rather look to increase my exposure. I would not have a similar approach were I to invest in speculative companies or cryptocurrencies.
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. You should not make any investment decision without conducting your research and due diligence.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with the company mentioned in this article.