It’s been nearly two years since I posted an update on Baby AAI’s portfolio. This was pre-covid and lots of changes have happened.
I funded Baby AAI’s account with an initial $7500 in a taxable account and have been contributing $100/week since 02/27/17, so we’re approaching the 5-year mark soon.
The last update was the 3-year update that can be found here.
I’ve added and sold some positions. I sold out of DIS and reduced some shares in a couple I had already. I also sold out of HBI and the FOXA spinoff from DIS . I purchased new shares in BRK.B, GOOG, V, MSFT, EBAY, JNJ, XOM, MTCH, T, ABBV, BABA, NKE, MO, Z, and DISCA. I added shares in AAPL, RDS.B and VOO. My best performing stock is currently PYPL at 222% gain followed by GOOG at 122% and EBAY at 90%. My worst performer is RDS.B at negative 16.5%. I continue adding a little VOO which is an S&P 500 index fund when I have the funds.
Below is the current portfolio after more than 4 years. As you can see the top 5 positions account for nearly half the value of the account. The current Value is $45,320 including a couple hundred in cash.
I currently am letting all dividends accumulate besides VOO and add the dividends to the $100 in cash I contribute weekly. The last update valued the account at $26,898.
So let’s see how we’re doing now against the original projections, which assume 7% compounding.
I’m hoping to achieve a 7% CAGR which will put the balance just over $200,000 by the time he’s 18. That’s by doing nothing else but contributing $100/week and letting the power of compounding work its magic. I used a simplified actuarial formula assuming $7500 contributed right away and $5200 ($100/week) contributed at the end of each year.
This is a graph of what the value should be at the end of each year, of course the stock market has large swings up and down so this is in a perfect world of 7% compounding each year.
So basically, by the end of the fifth year, February 27, 2022, the portfolio should be valued at $29,903. Well we haven’t even finished the year and we’re way ahead of those number. Notice the red line is breaking apart from the projections.
I can’t wait to keeping watching this portfolio grow!
I hope everyone is having a great year!