This sample portfolio is meant to represent a hypothetical ethical portfolio, so it is diversified across a number of industries. The purpose of this portfolio is not to suggest it is the best portfolio. It certainly isn't my portfolio. This portfolio is an experiment.
I want to see how a purely ethical portfolio can go over the long term. As an additional challenge (for this experiment), I will only add a stock once I have covered it on this website. In order to get the ball rolling, I'm using the last three companies that:
a) I actually own shares in in real life, and;
b) I have covered recently on this website
However, in the future I will add only some of the companies I write about, without regard to whether I actually own shares of that company. I haven't yet decided which companies should be added to the experimental hypothetical portfolio. I will post whenever I add a new company.
For a starting buy price, I will use the offer price at the moment I published the most recent article regarding that company. The one exception to this is My Net Fone. When I wrote and posted the last traded price (on 18/09/2013) was $1.35. The Ethical Equities Newsletter delivered that day stated:
"This morning I published my recent research on My Net Fone (ASX: MNF), which has reported since I last wrote to you. When I wrote the article, the shares had been trading at under $1.40 for weeks. Frustratingly, the share price was up 5% that morning."
It wouldn’t have made any sense to buy the shares on the very day they were hyped up (it never does) and, as one might expect, the share price subsequently came down, trading at $1.36 quite recently. I have therefore chosen $1.40 as the buy price for My Net Fone, which I think is fair enough.
In the future, I will use the last traded price when I update the portfolio on this website.
Without Further Ado, here are the first three holdings of the Experimental Hypothetical Ethical Share Portfolio:
|Company||Code||Date Added||Buy Price|
|My Net Fone||MNF||17/10/2013||$1.40|
Disclosure: The Author owns shares in Energy Action, My Net Fone, and 1300 Smiles at the time of writing. Nothing On this website is advice. Ever.