Saturday, March 5, 2016

Recent Sale

March 3, 2016: Sold out of Modern Warfare Motif

Excited to share about my first sale since starting this blog, so please let me know what you think/where I can improve/if there is anything else you would like to know in future posts.


Overview

In December I had bought the Modern Warfare Motif.  It is currently made up of 25 companies and has outperformed the market over the course of the past year.  It was essentially a bet in Aerospace for me.  The companies that make up this list are all related to "modern warfare" such as drones and other advanced technologies.  They all work primarily with the United States Department of Defense.  If you are unfamiliar with 'Motifs' stay tuned as I plan to write about it soon!



1 Year Return


Photograph from www.motifinvesting.com/motifs/modern-warfare


Why I Invested?

I invested in this Motif as I see defense spending going up I could own 25 companies all for just a $9.95 commission fee.  Hoping to invest in the sector, I thought that this was my best option. Moreover, it holds companies such as LMT, NOC, BA, GD, and RTN which are all strong companies that I had heard of before.  Since creation in March of 2011, the Modern Warfare motif has gained 121% compared to 67.3% by the S&P.  It also yields 2.3% and a P/E ration of 19.64.  The staggering returns and political turmoil led me to make this purchase.


See below for a breakdown of the companies and weight in the Motif


Photograph from www.motifinvesting.com/motifs/modern-warfare


Why I am selling?

One of my goals when I decided to start this blog was to know what I am invested in and to remove the clutter.  Although, I am a huge fan of Motif, my mind always wants to invest in the popular trends.  This is my first step towards cleaning my portfolio.  I do not think there is anything wrong with the Motif and believe it will have great returns in the future, but I do not believe it is the right tool for me to hold for my investment goals.  On the other hand,  I would be interest in the future to create a Motif of 30 great dividend yielding stocks and investing in them all for $9.95.  At this time however, I do not see the logic in paying commissions especially when I am making such small investments.  Robinhood alone could do the job for me.

Lockheed Martin (LMT), Boeing (BA) , and General Dynamics (GD) are stocks I will keep an eye on in the future as they all yield over 2% and continue to grow in order to diversify.  


Return Calculation

What are the chances!  A gain of exactly $1!  Over the course of the two months the Motif collected $2.84 of dividends from various companies.  As I did not want to sell at a loss, I am glad the market recovered just enough in this area for me to sell for a $1 profit...





Conclusion

This is my first step towards creating a strong core of dividend stocks.  I now have $2,000 at my service to invest in other opportunities.  The sale of this motif reduces by yearly dividend income by $46.00. The motif was yielding 2.3% so I hope to make that up and more through investing in various companies.  I also hold two more Motifs - 'Too Big to Fail' and 'Rising Interest Rates'.  I plan to divest my portfolio from these investments as well in due time.  I plan to close out my positions in my Motif account; however, I do plan to keep the account open as it plans to offer IPO access to account holders for as little as $250.


Do you use Motif?  Have any of you ever had a problem with having too many accounts? Is there any other information I should have shared about this sale? Please comment below and thank you for stopping by. Cheers!





No comments:

Post a Comment