Saturday, October 24, 2009

The Brooklyn Portfolio: Fully Funded and Ready for Business

The Brooklyn Portfolio, the Brooklyn Fund put together by McBrooklyn and McBrooklyn readers, became a reality Friday, October 23, with the purchase of 10 shares of each Brooklyn-related stock or ADR in the fund.

The fund (not public but anyone can copy these purchases if they like) now holds 80 shares, 10 each of the eight stocks listed below.

National Grid plc (ADR) - NGG - 48.22/share * 10 shares = 482.20
Pfizer Inc. - PFE - 17.25/share * 10 shares = 172.50

Bristol Myers Squibb Co. - BMY - 22.24/share * 10 shares = 222.40

Corning Incorporated - GLW - 15.65/share * 10 shares = 156.50

Nathan's Famous - NATH - 14.38/share * 10 shares = 143.80

Dime Community Bancshares - DCOM - 11.59/share * 10 shares = 115.90

Novartis AG (ADR) - NVS - 51.89/share * 10 shares = 518.90

Brooklyn Federal Savings Bank - BFSB - 12.10/share * 10 shares = 121.00

The initial cost of the all the shares was $1933.20. (We are ignoring transaction costs at the moment, but these will have to figure in later.)

As we explained in our original post about The Brooklyn Portfolio, every once in a while we'll review how the portfolio is doing. (We might even create a fancy bar chart.) If the portfolio is up, that will be good news for Brooklyn. If it's down we'll cry and pound the table.

The Brooklyn Portfolio includes shares in companies that have a strong Brooklyn presence, started in Brooklyn or have some other significant connection to Brooklyn. Several companies were recommended by McBrooklyn readers. (See post one and post two.) The fund doesn't include every business founded in or related to Brooklyn -- just the companies that seem to be sound and offer opportunities for growth and/or income.

These companies are subject to change, but our aim is to hold onto them as long as is prudent.

Yield: We notice that the yield is rather generous on many of the stocks in The Brooklyn Portfolio. [NOTE: These are the yields reported by Google Finance. We've noticed that sometimes yields vary depending on who reports them] National Grid, for example, reportedly yields 7.23 (as of Friday, Oct. 23). Pfizer yields 3.71. Dime yields 4.83. Bristol Meyers Squibb yields 5.58. Novartis yields 3.30; Brooklyn Federal Savings Bank yields 3.31. Corning, however, yields less -- 1.28 -- and Nathan's pays no dividends at all -- but they do make good hot dogs.

So there you have it. We sincerely hope the Brooklyn Portfolio makes us all rich, but even if it doesn't it will be interesting to see how this fund performs compared to other funds based around equally flimsy principles.

- The Brooklyn Portfolio Takes Shape
- The Brooklyn Portfolio: Investing In Brooklyn

Photo by Don Hankins, Creative Commons license

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