Minutes 6/1/16

1 June 2016
Minutes
I. Online Retailers
A. Amazon
1. Walmart has been teaming up with Amazon
2. Fantastic quarter
3. 21 shares ~= 14,000
II. Apparel
A. Under Armour
1. Massive drop in stock?
a) Exaggerated by Google Finance
b) Still a huge drop, on Yahoo Finance
2. Was possibly too highly valued at the start
3. Lost market share, possibly had bigger discounts, etc. There’s always a
description in the revenue report
4. They signed on a bunch of athletes (3 NBA starts); did this have to do with a
decrease in stock price?
5. More fashion than consumer products
6. Two consecutive quarters down, followed by a decreased guidance
III. Portfolio Analysis
A. We are over-exposed in technology
1. Possibly expected for a Tech school
2. Do we actually know these stocks better?
B. Why has the market outperformed us?
C. Caltech Fund guy: if you don’t know what to do, buy a Russell index.
1. The Russell Indexes are a family of global equity indices that allow investors
to track the performance of distinct market segments worldwide
D. Suggestion for the summer:
1. 1 quarter in cash, 1 quarter in Russell Indices, 1 quarter in Russell or an ETF,
1 quarter in stock
E. How will the election affect geopolitical strife?
F. How to rebuild our portfolio for next year:
1. By splitting assets into defensive and earning sectors, one will win.
2. Used to split portfolio by subgroups
a) For example: Technology Growth, Defensive, etc.
b) If a portfolio hit some set cap, it would be sold
(1) What are formulas that people use for risk-adjusted return values?
c) Create motivated theses/philosophies for each subgroup or stock
(1) Growth/income theses; “20% total return”
(2) Diversity investment theses
3. We could send our portfolio to professional investors for comments
a) We would need to take notes on a master spreadsheet for:
(1) Why it was purchased or not purchased
(a) Short-term or long-term expectation
(2) Where the price will go
(3) What is the exit strategy
(4) Who defended it
4. Free advisor at Personal Capital, a personal wealth manager, with one free
review
G. Should we decided stocks before purchasing, or purchase and then create
subgroups?
H. Learning and percentage return are independent
1. Test investment theses and see what happens
IV. Secretary used to report on the top 3 or 4 new stories from the week and report on
them; may do this again.