Summary
- After the success of a hedged portfolio built around an AT&T position in 2017, I started presenting similar concentrated portfolios built around other conservative stocks, including Coca-Cola in 2018.
- Here, I update the performance of the Coca-Cola portfolio halfway through its planned six-month duration.
- I show how, taken together, the performance of these portfolios exemplifies a "heads you win, tails you don't lose too much" approach.
- Looking for more? I update all of my investing ideas and strategies to members of Bulletproof Investing. Get started today »
A vintage Coca Cola poster (photo via Tumblr).
A Hedged Portfolio Around A Coca-Cola Position
In 2017, I presented a hedged portfolio built around an AT&T (T) position. That portfolio was designed to last six months, and six months later, it had hit it out of the park, outperforming my site's best-case scenario and the SPDR S&P 500 ETF (SPY), as you can see in the chart below.
In August 2018, I started presenting new hedged portfolios built around positions in putative conservative stocks. I started with AT&T again (Let's See If Lightning Strikes Twice), and got to Coca-Cola (KO) in November (Building A Bulletproof Portfolio Around Coca-Cola). As with the previous hedged portfolios, the Coca-Cola one was designed to last six months. Let's see how it's doing three months in, given the recent market fluctuations. First, a reminder of how the portfolio was constructed and what it consisted of.
