The Portfolio Guru Asset Management Portfolio Guru Post TheStreet.com Columnist.

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The Portfolio Guru Asset Management Portfolio Guru Post TheStreet.com Columnist

Transcript of The Portfolio Guru Asset Management Portfolio Guru Post TheStreet.com Columnist.

  • Slide 1
  • The Portfolio Guru Asset Management Portfolio Guru Post TheStreet.com Columnist
  • Slide 2
  • Portfolio Guru, LLC October 7, 2013 Asset Management Services Fee-Only 2% Annual Limited PoA Low Maintenance Bespoke Separately- Managed Securities Selected for Individual Client Objectives Cost Efficient Buy-and-Hold Tax Efficient Minimize Commissions 2 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • The Basic Portfolio Guru Process October 7, 2013 Income Generation Persistent Reinvestment Active Management 3 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • The Basic Portfolio Guru Process October 7, 2013 Wealth Reinvestment Income 4 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Active Asset Management October 7, 2013 RESEARCH on Owned/Potential Securities Industry Conferences SEC Documents Mgmt. Conference Calls Industry Publications Financial Media Portfolio Construction Allocation by Category Industry Weightings Income Objective Day-to-Day Management Daily Analysis of ALL Owned Securities News, Financials, Industry Developments, etc. J. Collins Watches/Writes About Markets on a Daily Basis Client Accounts are NOT ChurnedTrading is Kept to a Minimum 5 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Portfolio Construction October 7, 2013 Minimum Yield 8% Annualized Monthly Cash Flow Needs MORE Risk Assumed in Extreme Situations Age Until Retirement Capital Appreciation vs. Current Yield 6 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • 3 Basic Account Structures October 7, 2013 Classic Income-Focused Mix of Bonds, Preferreds and High- Yielding Stocks Equity Buy-Writing MAX Q ALL Securities Pay Monthly Maximize Monthly Income for Special Needs Reinvestment Not Assumed YPP Young Persons Project Shift From Reliance on Monthly Income Seek Out Home Runs 7 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • The Magic of Compounding October 7, 20138 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • The Classic Example: 50 Years of Coca-Cola Stock Returns; Reinvestment vs. Non-Reinvestment October 7, 20139 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Strong Model Portfolio Performance: $100,000 Invested on October 4, 2011 = $132,545 Today October 7, 201310 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • The Benefits of ACTIVE Management: 2013 Has Been a Challenging Year for Fixed-Income Managers; Portfolio Reallocation Has Improved Model Portfolio Results October 7, 2013 Model Portfolio ValueQtr./Qtr.Annual 10/4/2011$100,000 12/31/2011$105,9625.96% 3/30/2012$118,49111.82% 6/29/2012$123,3624.11% 9/28/2012$128,3854.07% 12/31/2012$128,4260.03%21.20% 3/29/2013$133,1503.68% 6/28/2013$129,817-2.50% 9/30/2013$130,5270.55% 10/4/2013$132,5453.21% SinceINCEPTION32.54% ANNUALIZED16.27% 11 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • It Works in Real Life Changes to Guru Client 1s Account Have Produced Instant Benefits October 7, 201312 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Agnostic As to Industry: Follow The Yield October 7, 2013 2014/Beyond: Energy; Opportunities Overseas? 2009-2011: Financials 2006-2007: Dry Bulk Shippers 2007-2008: Consumer Goods 2012-2013 Energy 2008-2009: Crash, Then Rebirth 13 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Company Fundamentals Security Selection Income Production Keen Analysis Massively Undervalued? Portfolio Guru, LLC Invests in Individual Companies: No ETFs, Mutual Funds, etc. October 7, 201314 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Preferred Stock Straight Debt High-Yielding Common Income Securities + Convertible Preferred/Debt - Call Option Writing Equity Linkage Buy Common Stock Younger Clients Home Run? Love the Company; How Do We Invest In It? October 7, 201315 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Case Study: Miller Energy Resources October 7, 2013 Bought Cook Inlet Drilling Assets out of Bankruptcy in 2009 Very Little Production Entering 2013; Sidetracking Old Wells High Debt Levels Large Short Interest 16 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Case Study: Miller Energy Resources October 7, 2013 Finding a Catalyst is Always Key to Generating a Winning Position Millers Catalyst: An Incredibly Productive Well June 24, 2013: Miller Announces That Well RU-2A Is Gushing Oil IP rate of >1,200 BB/D; Greater Than Millers Prior Total Company-wide Production Rate Much More to Come Potential for 10 More Wells Drilled by April 2014 Production April 2013 1,000 BB/D August 2013 3,400 BB/D Estimate December 2013 4,000 BB/D Estimate April 2014 6,000 BB/D, Proved reserves April 2013 1.8MM April 2014 POTENTIAL >12MM 17 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Case Study: Miller Energy Resources October 7, 2013 Key to Profitable Investing: Acting Rapidly on Ideas Actual J. Collins Quote: Whoa, This Is Going to Go Bananas! 3 - Step Process Place Trades for Clients Send E-Mail to PGP Subscribers Share Insights on Miller in Real Money Column Bought MILL in July/August @ $5-$6.60 per share/wrote calls ($10 strike; Feb 2014) 10/4/13: MILL $8.39 18 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Case Study: Miller Energy Resources October 7, 2013 Key to the Process: Identifying Undervalued Securities High Yields Can be an Indicator of Buying Opportunity Found Miller Energy via the preferred issue (MILL-C) MILL-C: $25 Par; 10.75%; convert to MILL @ $10/share Bought MILL-C in April/May @ $22.00 To Yield ~14% 10/4/13: MILL-C $26.86 19 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Stock Market: Bearish Valuation is a Concern: S&P 500 YTD: Consensus 2013 EPS DOWN 4.8%, Price UP 15.6% P/E Multiple ABOVE Historic Averages; 2014 EPS Estimates TOO HIGH Margins at Cycle-High; Revenue Growth Anemic Quantitative Easing: the Fed is Driving The Bus What Happens When They Taper/Exitand UNWIND??? Myriad Governmental Externalities Uncertainty About Affordable Care Act Restraining Hiring/Wage Growth D.C. Follies Are a Huge Risk October 7, 2013 Market Overview 20 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • US Treasury Market: Neutral Short Rates: Effectively 0% until 2015 Cash is Trash If You Have $ in Savings/CDsYou Need to ACT Long Rates: Likely to Rise, Albeit Gradually Quantitative Easing: $3.5 TRILLION and Counting No One Knows How To Unwind; Its Never Been Done Before D.C. Follies Always a Risk October 7, 2013 Market Overview 21 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • Corporate Fixed-Income: Selectively Bullish Special Situations High Yield Generally 8% or Above Call-Protected Discount to Face Value Potential Capital Gain Mezzanine Still Attractive Equity Valuations Rich and H-Y Bonds Yields Near Historic Lows Currently Buying/Reinvesting into Preferreds/Convertible Preferreds for PG, LLC Clients October 7, 2013 Market Overview 22 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • 21 Years of Investment Experience Completed All Requirements for CFA Charter Investment Bank Equity Analyst,1992 - 2002 Lehman Brothers (NY): Auto Parts Donaldson, Lufkin & Jenrette (NY/London): Autos/Auto Parts UBS (London): Autos/Auto Parts/Tyres Private Investor, 2002 - Present Personal Portfolio Composed Primarily of Income Securities Options Trading; Front-Month, Out-of-the-Money a Specialty Founded Portfolio Guru, LLC in 2011 to: Publish a Newsletter (The Portfolio Guru Post) about Income Investing Manage Money for Individuals Columnist for Real Money at TheStreet.com since May 2013 October 7, 2013 Who Is This Man Who Calls Himself Guru? 23 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]
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  • October 7, 2013 Where To Find Jim Collins Work Jims Column is Featured Three Times a Week at Real Money, the premium portal of TheStreet.com http://realmoney.thestreet.com/authors/jim-collins The Portfolio Guru Post Bi-Weekly Newsletter (subscription) The Gospel of Income Investing Company-Specific Analysis Market Commentary Model Portfolio Management www.theportfolioguru.com 24 Jim Collins Portfolio Guru, LLC www.theportfolioguru.com 646 823 4598 [email protected]