A Value Portfolio

I suppose I'm more of a Growth-aholic!

But ...

Just so I don't break Warren Buffet's heart, I'm going to give Value a shot too :)

I can just as well allocate some funds to a value oriented mutual fund and diversify, but I won't learn that way. So its got to be a personal Value Portfolio.

I'm starting off with some basic ground rules to impose discipline and to break the habit of frequently trading in and out. The first step will be to "commit" to the companies I want to be in. I think I like that. If you commit, you'll always stick through thick and thin, keep using each sell-off to accumulate more until the required allocation limit is reached.

Also, I want to add that I'm going to view this is as a long-term portfolio with a time horizon 10-15 years out. Once I select a company over good fundamentals, the only reason I'll liquidate a position is if the fundamentals change significantly or if I need to rebalance.

My initial aim is to start with around 10-15 large-cap value oriented companies across diversified sectors. So with that in mind, I pick up my sketch pad and jolt down the following for brainstorming, listing what I consider some key differentiators for each. I'll add more to the list and scratch out ones I think don't make a fit.

T - Technology, Utility, Dividend
MO - Consumer Staples, Defensive, Dividend
BAC - Financial, Dividend, Undervalued
HD - Retail, Housing, Undervalued
JNJ - Pharmaceutical, Consumer Staples
BA - Manufacturing, Defense, Undervalued
COP - Energy, Buffet Owns It
MSFT - Technology, Stagnant Stock
CX - Construction, Cement, Infrastructure
USG - Construction, Housing
USB - Financial, Conservative Bank, Dividend
PFE - Pharmaceutical, Undervalued, Dividend
RIO - Minerals, Foreign Exposure
WMT - Retail
KO - Diet Coke

I'll share my thoughts on these and others in different posts ...