Common Cents Investing will contain posts grouped into three major categories. Posts appear in date sequence on the home page, but it is suggested the reader follow a particular thread/stock by using the labels section on the left hand side of the page. This will bring up all the posts related to activity in a particular thread/stock and the reader can follow activity through time. The four type of posts are:
Commentary - Occasional posts providing general market commentary. These thoughts do not really drive specific common cents transactions. Rather this commentary is mostly intended to contain perspectives about the macro environment that may help provide context for a reader to determine and adjust overall asset allocations and portfolio weightings.
Portfolios - A portfolio is an approach to actively managing a group of stocks and options that when taken together strive to achieve a specific objective. More specifically, the objective of each portfolio is intended to augment traditional portfolio management with other ways to achieve consistent, absolute oriented returns.
"site construction note": the UDC portfolio was the first Common Cents Investing portfolio and pre-dated this blog. This portfolio is summarized in a slightly different format in a tab at the top of the page, but is a good example of the intent of a portfolio. The objective of this portfolio is to generate a positive absolute return each quarter by rapidly rolling through a series of high dividend yield utility stocks. Six quarters of results are shown in the tab at the top of the page.
Sectors - Stocks in a specific sector or theme where the author feels strongly about the prospects for the company for the long term. (quarters or years). The general rational for holding the stock over the long term is documented in posts describing the business case and recent developments such as earnings announcements However, within the context of a long-term holding the author intends to actively manage these positions to minimize risks. That includes dividing capital allocated to this position into multiple lots, adding and subtracting to the position based on where it might sit in a trading range, and the use of options to hedge or leverage a position.
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