Portfolio Activity

This year – so far – has been unusual.

Long Positions

I haven’t bought many new positions, except for the following.

  • increased my Oaktree Financial position by 33% at the beginning of the year for $40 (put got assigned)
  • doubled my position in Fairfax Financial around $435/share
  • started building a position in ALJ Regional holdings. Currently I am 1/2 or 2/3 full, at an average price just below $3.20.
  • bought a slug of IBM after the latest disappointment.

Consequently I am about 35% in cash.

My largest positions are “financials” BRK (15%), LUK (10%), FRFHF (8%), OAK (7.5%), and WFC (6.5%), and account for nearly 50% of my invested portfolio.

Options

I have been been trying to educate myself about using options more opportunistically. It has become a new weapon in my arsenal. It fits perfectly as an overlay to a long-term value investing strategy.

At some point in the year I’ve embarked on months-long cash secured put campaigns  on:

I’ve had shorter lived positions in HBI, FSLR, and NOV, in which the position moved away from me rather quickly.

I currently have open CSP positions on UA, GME, DIS, FAST, MSM, and STX.

Between 2010 and 2016 my total “income” from dividends and options increased from $3,000 to $9,000 (yield between 2-3%). So far this year (2017), I’ve generated about $18k of income from options and dividends, and feel reasonably confident about hitting $25k by the end of the year (yield >5%).

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