The Portfolio

MKG North American Fund

1.Sector: Monitor to see if sector is profitable over holding period

 

2.Industry: Monitor to see if industry is profitable over holding period

 

3.Current Stock Prices: Performance metric, monitor performance of company

 

4.Max/Min Prices: Strategic purposes, such as stop losses, long and short strategies

 

5.Market Capitalization: Value of company (Shares Outstanding*Current Share Price), this number is more of a formality, just to gauge size of the company

 

6.Beta: Risk of security relative to the market, valuation purposes, cost of equity and target price of each security

 

7.P/E ratio TTM: Comparable multiple, valuation purposes, will use this to determine if company is over or undervalued by the market, will compare trailing Industry P/E’s and calculate my own forward based on my own earnings forecasts and valuation

 

8.Dividend Yield: Knowing this will give me the ability to calculate my plowback/retention ratio for the company's Earnings Growth Rate for valuation purposes

 

9. 5 Year Trailing Geomean Return: Performance metric, will be used to calculate expected portfolio return, overall I want to maximize this figure

 

10.Volatility: Risk/variation of the change in stock price. I want to minimize this figure, aiding in achieving an optimal portfolio

 

11.Earnings Yield: (Earnings per share)/(Current Stock Price): For every dollar invested, the stock will generate X dollars of revenue, typically a high earnings yield is good, but does not tell the whole picture

 

12.PEG: PE Ratio/Earnings Growth Rate: Similar to PE, except it takes into account the company's earnings growth rate. 

 

13.EPS: Performance metric, will use in relative valuation, forecasts and stock selection process

 

14.ROE (Return on Equity): Measures the profitability of the company's investments, will use DuPont identity to calculate this, will not rely on ROE from yahoo finance alone, will compare this figure to  individual company's cost of capital, in terms of reinvestments and dividend offerings

1.Air Canada (AC.TO)

2.Canadian Pacific Railway Limited (CP.TO)

3.JPMorgan Chase & Co. (JPM) 

4.Intuit Inc. (INTU) 

5.CIBC (CM.TO) 

6.Tesla, Inc. (TSLA) 

7.Apple Inc. (AAPL)

8.West Fraser Timber(WFT.TO) 

Stocks

Sectors

Industrials

Industrials

Financials

Technology

Financials

Technology

Technology

Basic Materials

Stock Screener:

In order to screen the securities that I plan to invest in, I created a stock screener using 14 metrics that are both qualitative and quantitative in nature.