Vancouver, Canada - Circa 2021 : American Express credit card close up view

Goodbye American Express (AXP)

Byadmin

Just over a year ago (October 2023), I had a hunch. I bought some American Express ($AXP). It’s up almost 100% since then.

Maybe I’m a bit premature at this, but the other day I sold it and took the profits. I also took some $ZMMK (BMO Money Market) and bought some more small cap value.

I purchased the Vanguard Small-Cap Value Index Fund ETF Shares (VBR). The small cap value funds have a much lower P/E ratio than the large caps. If the large caps are scaring me in valuation, I should be running to the small caps instead of to cash (or gold).

As of today, I have:

  • 44.7% in US stocks – 34% 12 mo. return (S&P 500)
  • 18.6% in International stocks – 25.6% 12 mo. return (VT)
  • 15.5% in preferred shares – 10.5% average dividend (my holdings)
  • 11.5% in High Dividend ETFs (12.5% average yield)
  • 8.2% in cash, uninvested (lowest it’s ever been) – 0% interest rate
  • 0.8% in gold – 5.8% average distribution rate (HGY)
  • 0.7% in money market funds – 4% average dividend (ZMMK)

This portfolio returned 21.5% this year. Obviously, underperforming the S&P 500 alone, but I’m still happy with it.

I should say that having less than 10% in cash means that I met my original goal from 2022 of having less than 10% cash on hand. And, in 2024, I have almost made as much in the stock market (including unrealized capital gains) than I did with my business. I have almost reached all of my original goals. Which is incredible.

I am not sure if it counts entirely, because 2024 has been an incredible year for stocks, and it’s hard to imagine that continuing in 2025. So perhaps my next goal is to reduce variability in the gains.

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