Comments from subscribers to ICLUBcentral stock newsletters sometimes are a complaint that one of the recommendations is a company previously recommended and still followed by the newsletter. Well, sometimes the best addition to a portfolio is adding to a position you already own. This may not be as exciting as hunting down new prospects but it is often a very profitable strategy. I was reminded of this recently when I attended an online Motley Fool event. The event ended with a reminder to keep in mind companies already in your portfolio when investing new money. Good companies tend to continue to outperform the market. Why not consider good companies you already own? Hours after finishing the Motley Fool event I received my notice that the new edition of the SmallCap Informer was available. In his general comments, Doug Gerlach also commented on adding to current positions as a good practice when these companies are good buys. Doug has also blogged on this topic and this can be found on the StockCentral site at https://www.stockcentral.com/Learn/BlogEntry?id=5750 .
I thought I would give a few personal examples of adding to a position that have worked out well.
Company Purchase date % Gain
AAPL 7/26/2012 502 %
AAPL 9/5/2012 412 %
AAPL 1/25/2013 677 %
AAPL 4/22/2013 777 %
FB 3/26/2013 1,109 %
FB 4/22/2013 1,152 %
FB 8/15/2018 82 %
FB 5/27/2020 46 %
The myICLUB club management software recently added a much easier way to track the performance of multiple tax lots of the same company. The Portfolio Gain/Loss report now has a checkbox option to include the gain/loss for individual tax lots. The report also includes % gain for each tax lot when the individual tax lot option is chosen. Just click on the checkbox next to the text “Show gain/loss for each tax lot” to include this more detailed information in this report. This is a good way to track if your decisions to add to a position have been good ones.
Russell Malley