Portfolio Analysis Dashboard Diagnostics Better Know Your Dashboard
Portfolio Analysis: Dashboard Diagnostics “Better Know Your Dashboard” December 16, 2009 Presented by: Mark Robertson Founder and Managing Partner – www. manifestinvesting. com
Dashboard Diagnostics Club History & Characteristics Club Name: “Anonymous” (BKYD) Location: Midwest # of Members: 8 (Mixed) Founded: > 10 Years Ago The group includes a couple of teachers, a banker, a nurse, owner/operator of a pharmacy, a city manager and the current club is home to the “surviving” members of a couple of investment clubs. One was started years ago thru an affiliation with the Business & Professional Women’s Association and the men were affiliated with a Rotary-based club. Social activities are important to them. 2
Dashboard Diagnostics Club Long-Term Performance (Unit Value vs. Market) 10 -Yr Rate of Return = 2. 6% vs. 0. 9% (General Market) 3
Dashboard Diagnostics Current Dashboard (Report Card) 4
Dashboard Diagnostics 1. Return Expectations. . . With MIPAR at 9%, our target range for the overall portfolio PAR is 14 -19%. Our objectives will include the “hunt” for some higher return candidates. 5
Dashboard Diagnostics 2. Quality. . . As is the case with the typical Better Investing-based investment club, the overall average quality is quite high (79. 5) and the club holds many blue chip companies in its portfolio. The financial strength and EPS Stability ratings are also quite high. 6
Dashboard Diagnostics 3. Forecasted Sales Growth. . . We pay attention to overall forecasted sales growth for purposes of size diversification. One of the most powerful portfolio design and management parameters is to have enough growth. . . aiming for 10 -12% as a portfolio average. 7
Dashboard Diagnostics Forecasted Sales Growth (Size Diversification). . . This distribution is also pretty “typical. ” Our general target is 25% Large, 50% Medium and 25% Small. Where are the smaller, promising companies? 8
Dashboard Diagnostics 12% 7. 4% 9
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Dashboard Diagnostics P/E Ratio History & Forecast The sale of General Electric (GE) and Home Depot (HD) provides the proceeds (8. 1% of total assets) to shop for higher growth and higher PAR replacements. 12
Dashboard Diagnostics Opportunity Map & Sector Diversification. . . Source: www. manifestinvesting. com/dashboard/1835 13
Dashboard Diagnostics Objectives: Higher PAR, Higher Growth. . . Select Strayer (STRA) 14
Dashboard Diagnostics Strayer Education (STRA) 15
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Dashboard Diagnostics Think Results. Impact. Before and After. Bigger Picture. Before. After. The sale of GE and HD and the replacement with STRA moves the overall portfolio PAR and average sales growth forecast in the right direction. Think cadence and steady discipline. 17
Dashboard Diagnostics Bivio dozen (12/16/2009) www. manifestinvesting. com/dashboard/12218 Published monthly, the bivio dozen is a listing of the top 1% of all stocks covered by MANIFEST – based on a combination of PAR and Quality. 18
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