Tuesday, January 6, 2015

2014 Review / 2015 Preview

2014 Review

- Fund took positions in 7 companies. This year the fund embarked on an ambitious wealth building plan. It invested capital in 7 stocks/etf's that are continuously growing in value. The list currently includes Realty Income, Ford, AT&T, Sysco, Powershares Build America Bond ETF, Nuveen Long/Short Commodity Fund, and GE. Shares were purchased throughout the year.

- Monthly Dividend receipts continue to grow. Dividends continue to get reinvested by policy and assist in the growth of the portfolio. The absence of transaction fees on reinvested dividends are a big help. Having a base revenue generator that grows has been a great lesson.

- The wealth building plan was refined and improved during the year. The fund worked on what to invest in, and how much to invest, making sure the fund's moral standards stay together with its profit standards.

2015 Expectations 

- The fund will be adding to current positions. Most of the current positions still have plenty of room to move before they reach their target. Positive earnings predictions for 2015 should be a catalyst for raising stock prices.

- The fund will possibly see an end to some positions as they reach the expected value for selling. There are a couple of holdings that are getting close to or already have reached target prices to at the very least take them off of the purchase list.

- The fund will be starting new positions. If there are stocks that end up getting sold, the fund will use those funds to either add to existing or start new positions. Currently, the Penny Mac Mortgage REIT (symbol PMT) is the most serious new candidate for the fund.

- The fund will be looking to start call selling to add to revenue building. As the fund continues to grow, it will be in a position to start selling call options on positions. This will add another revenue stream to the fund.

- The fund will continue to use dividend reinvestment to power the portfolio growth. The fund's 2015 dividend amount is projecting to be about 4 times the amount received in 2014.  That high amount is mainly due to the fund starting in 2014. But who knows what can happen in the future!

Happy investing to all! There are so many good to great investments out there. Plan the work, and work the plan. Profits are sure to come.

KDK Fund Team

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