Investment Workshop 40: Still at Chautauqua

Wanderer
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Wanderer

The Wanderer retired from his engineering job at a major Silicon Valley semiconductor company at the age of 33. He now travels the world, seeking out knowledge from other wealthy people, so that he can teach people how to become Financially Independent themselves.
Wanderer
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Hello again and welcome back to the Millennial Revolution Investment Workshop! New readers, please click here to start from the beginning.

This is going to be a short post today, as we are tragically sequestered away in what appears to be an 18th century manor nestled away in the British countryside…

Anyway yeah, tough life. We’ll tell you all about it once we get back.

But in the meantime, being somewhat secluded this week has cut off my normally steady diet of news, so opening up CNN for the first time in about a week was a bit of a shock.

Just…Jesus Christ. That is a LOT of stuff going on. It’s not often we see Nazis, Communists, AND the threat of nuclear war all showing up in one week, but…just…Jesus Christ. I think I’m going to shut my laptop off now and go jump back into the pool.

And here’s where I would do an extended spiel about why news like this should be ignored, but because this is Chautauqua week I’ll have to summarize thusly.

Always invest assuming the world will not end. Because if you’re wrong and the market keeps going up as it always does long-term, you’ll have missed out on the gains by huddling in cash. But if you’re right and the world does end…well, who cares about your portfolio at that point?

So because this is a buy day, nuclear war or no nuclear war, Chautauqua or no Chautauqua, we shall do our regularly scheduled buys as always.

Canadian Portfolio

We begin as always by adding in our cash and taking a snapshot of the portfolio…

Asset Ticker Unit Price Units Market Value Allocation Target Allocation
Canadian Bonds VAB $25.30 136 $3,440.80 37.90% 40%
Canadian Index VCN $30.60 55 $1,683.00 18.54% 20%
US Index VUN $43.60 40 $1,744.00 19.21% 20%
EAFE Index XEF $29.19 47 $1,371.93 15.11% 16%
Emerging Markets XEC $26.03 13 $338.39 3.73% 4%
Cash $1.00 500.59 $500.59 5.51% 0%

We calculate what we have to do to bring our portfolio back onto target…

Asset Ticker Target Allocation Unit Price Current Market Value Target Market Value Current Units Target Units Difference
Canadian Bonds VAB 40% $25.30 $3,440.80 $3,631.48 136 143.5 7.5
Canadian Index VCN 20% $30.60 $1,683.00 $1,815.74 55 59.3 4.3
US Index VUN 20% $43.60 $1,744.00 $1,815.74 40 41.6 1.6
EAFE Index XEF 16% $29.19 $1,371.93 $1,452.59 47 49.8 2.8
Emerging Markets XEC 4% $26.03 $338.39 $363.15 13 14.0 1.0
Cash 0% $1.00 $500.59 $0.00 500.59 0.0 -500.6

And finally we put in our orders being careful not to go into margin…

Asset Ticker Unit Price Action Fractional Units Units Proceeds
Canadian Bonds VAB $25.30 BUY 7.5 7 $177.10
Canadian Index VCN $30.60 BUY 4.3 4 $122.40
US Index VUN $43.60 BUY 1.6 2 $87.20
EAFE Index XEF $29.19 BUY 2.8 3 $87.57
Emerging Markets XEC $26.03 BUY 1.0 1 $26.03
Total $500.30

American Portfolio

And now to do the same on the American side. We start by adding in our cash and taking a snapshot of the portfolio…

Asset Ticker Unit Price Units Market Value Allocation Target Allocation
Bonds BND $82.06 44 $3,610.64 38.40% 40%
US Index VTI $126.44 21 $2,655.24 28.24% 30%
International Index VEU $51.55 51 $2,629.05 27.96% 30%
Cash $1.00 507.75 $507.75 5.40% 0%

We then calculate what we need to do to bring our portfolio back under balance…

Asset Ticker Target Allocation Unit Price Current Market Value Target Market Value Current Units Target Units Difference
Bonds BND 40% $82.06 $3,610.64 $3,761.07 44 45.8 1.8
US Index VTI 30% $126.44 $2,655.24 $2,820.80 21 22.3 1.3
International Index VEU 30% $51.55 $2,629.05 $2,820.80 51 54.7 3.7
Cash 0% $1.00 $507.75 $0.00 507.75 0.0 -507.8

And finally, we enter in our orders being careful not to go into margin…

Asset Ticker Unit Price Action Fractional Units Units Proceeds
Bonds BND $82.06 BUY 1.8 2 $164.12
US Index VTI $126.44 BUY 1.3 1 $126.44
International Index VEU $51.55 BUY 3.7 4 $206.20
Total $496.76

And with that we are done. Thanks everyone, and see you next week!

WORKSHOP TOOLS:


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Disclaimer: The views expressed is provided as a general source of information only and should not be considered to be personal investment advice or solicitation to buy or sell securities. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decisions. The information contained in this blog was obtained from sources believe to be reliable, however, we cannot represent that it is accurate or complete.

11 thoughts on “Investment Workshop 40: Still at Chautauqua”

  1. Jesus Christ…how can you put money w/ all that going on? aren’t you scared after all you’re retired.
    I’m placing Trailing Stop Loss on all my positions just in case it stops going up for a while

      1. Or in the words of Buffet: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Easier said than done but right on the money.

  2. What do you mean when you say careful not to go into margin? Do you mean going Into borrowed funds like margin investing?

      1. Where do you factor in your trading fee from your institution? For example, BMO Investorline charges $9.95 per trade. Are you paying 8x $9.95 every month for trades?

    1. 1) Not a fan of individual stocks. We advocate for index investing using low cost ETFs.

      2) Generally, I like to choose ETFs that pay me dividends as cash so I can choose how to allocate it. But DRIP isn’t a bad thing.

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