Real Money Portfolio – Update 3/31

This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.

Nothing really to write home about this week.  Bought Brazilian natural resource producer Companhia Vale do Rio Doce (RIO) on Monday.  It is the world’s largest Nickel producer and ranks among the top producers of Iron Ore.   Nickel is under a tremendous supply deficit from rising demand from the world’s largest nickel consumer – China. This has led Nickel’s price to almost triple in the past year.  Usage in China may grow 28.5 percent this year.  Most Nickel is used to make stainless steel. 

As the world’s largest Nickel producer, RIO has benefited.  Its stock is up 24% year to date. 

Unfortunately, the purchase on Monday was followed by two down days and it was sold for a slight loss.  False starts comes with the territory.  As long a losses are small, we survive to see another day.  I will be looking to get back in – if we can get a little upside momentum.

 rio-0331.png

For the week, the portfolio was down -0.4%. Here is the updated log.

 rm0331.jpg

 

 

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  • RIO is a very good buy, I notice a lot of them are in hedge fund holding. It’s hard for me to keep up with individual stocks. I rather ETFs. I will buy EWZ in the future.

  • Moneymonk, ETFs are a great way to trade. EWZ is comprised of RIO 10% and PBR 24%. So, buying EWZ is almost like buying the stock. Brazil is holding up much better than the other BRIC countries so far this year.

    My trading universe is around 20-25 stocks. I ignore just about everything else. Reducing my trading universe has greatly improved my performance.