Jay O'Keefe

Jay's Portfolio

As of July 31, 2011

 

 
For the month of July, 2011, my portfolio gained 10.04%. For the year-to date, it is up 31.56%. The average annual compound rate of gain since January 1, 2000 (11 years, 7 months) has been 16.48%. $1 invested in my portfolio on January 1, 2000 would be worth $5.87 today.

Gold gained 8.5% in July, closing the month at $1,627. For the year-to-date it is up 48.3%. Its average annual compound rate of gain since January 1, 2000 (11 years, 7 months) has been 16.32%.

Silver gained 14.9% in July, closing the month at 39.90. For the year-to-date it is up 135.8%. Its average annual compound rate of gain since January 1, 2000 (11 years, 7 months) has been 19.6%.

Here is my portfolio as of July 31, 2011:

CASH

27.7%

(All US dollars, in T-Bills, Bank deposits & Money Market Funds) 
GOLD & SILVER 64.3% Gold – 10.0% (All gold coins held in storage)
Silver –
54.3% (Mostly silver coins held in storage; 
                       one position held in Silver Bullion Trust (SVRZF))
SHARES 0.0% 0.0%
NON-GOLD & SILVER PHYSICALS 6.7% Oil & Gas W/I – 6.7 (Non-publicly traded investment)
PUTS & CALLS 1.3%  
TOTAL 100%  

Comments

The main thing I wish to convey in this month’s comments is that I am making a major change in the way I will report to you going forward.

A MAJOR CHANGE IN MY REPORTING

For the past 15 months my health has been deteriorating. I am 83 years old. I am thankful to still be around, and as far as I know I am not in any kind of terminal stage with the immune system muscle disease I am suffering from (Polymyositis). But the disease is rare (only 1 in 10,000 people have it), and there are no studies on it. Treatment is experimental. My doctor is one of the best known and respected Rheumatologists in our area of the country. His clinic has treated me better than I could ever have expected and I believe they are making some progress with my case. One of the greatest risks with immune system diseases is the risk of infections. I have not had an infection of any kind for over a year now. All I can say is I am thankful to God for this. I know He is doing what is best, and I am at peace with what He decides to do from here. I know that some of you are praying for me. I am deeply grateful for that. Please ask God to give wisdom to my doctors, and pray that I will respond properly to what He is doing in my life.

I have felt for some time that I should reduce my workload to a level I can sustain at my age and current health condition. That’s what I am doing this month. Here is a brief description of the changes.

  1. As you know, in the past each month’s report began with a chart of key statistics, 52 of them in all. These require considerable time and effort to calculate. This chart will be replaced by a much smaller and simpler paragraph which will contain the most important information needed to follow my portfolio. I realize there are a few of you who look forward to this larger chart and enjoy studying it. Perhaps things will change, or someone might take over this part. We’ll see.

  2. I will discontinue reporting individual transactions (buys and sells). You might wonder why I would do that. It’s actually one of the most important changes, so let me explain it. Mary Ann and I have reached a stage in our lives where we are more interested in transferring assets out of our estate than seeking to enhance the value of those assets through investments. If we sold an asset it could easily mislead the reader into thinking we considered the asset overpriced when in reality just the opposite might be the truth. I assure you that if I sold some silver in order to raise cash, for example, I would be just as bullish on silver as I have ever been. I will try to make my opinion on each asset clear regardless of any other factors affecting the portfolio.

  3. It has been my practice to write one or more articles each month. I have decided to suspend that commitment. But I would not hesitate to write something I felt deserved your attention. The commitment would change to one with no set dates or frequency. I can say in all honesty as I write this that I have nothing of importance to add to last month’s article entitled, A Simple Explanation of My Portfolio Allocation. If you have not read that article, I recommend it. If you have, I recommend re-reading it.

  4. There is one thing I do not want to discontinue, and in fact hope to improve; that is, answering questions for those requiring one-on-one help with their investments. Obviously, I can continue this service only so long as the Lord gives me the strength of mind and body to do so. Again I request that you submit your question in writing. My mind is slowing down and that gives me an opportunity to think about the issues, do some research, and pray about my answer. Once the initial contact is made, a phone call will sometimes be needed, and I am glad to oblige. My favorite way of communicating is by email. But if you do not have email, a written note will be fine (E. Jay O’Keefe, PO Box 15248, Amarillo, TX 79105).

  5. I plan to continue reporting what’s in my portfolio and how it is allocated between the different asset classes. This should be of some value as at any point in time it will tell you what I consider most important to hold. For example, as you can see from the first paragraph above, I am 64.3% in gold and silver. For several years I have been more than half in gold and silver, which makes it easy to understand why the average gain on the portfolio over the years has been near that of gold and silver.

I’m sure there will be ways to improve the new reporting procedure. Your suggestions will be welcomed. The main objective is to reduce my work load to a more manageable level which will make it easier for Mary Ann and I to attend to some of our higher priorities at this stage of our lives. It has been a privilege to serve those of you who have used it. Perhaps in His Providence, God will give us a little more time to be of service.

Blessings to each of you,

Jay


To every thing there is a season, and a time to every purpose under the heaven:
A time to cast away stones, and a time to gather stones together;
a time to embrace, and a time to refrain from embracing;
A time to get, and a time to lose; a time to keep, and a time to cast away
.

(Ecclesiastes 3:1,5,6 KJV)


Jay's Recent Portfolios  |  A Simple Explanation of Jay's Portfolio Allocation
Jay's Working Hypothesis  |  Jay's Recent Transactions  |  Letters from Jay 
Jay's Simple Investing Rules  | Jay's Investment Model  |  Apply for regular e-mail updates
Investing Money With Experts' Help  |  Finance Disambiguated  |  Some other helpful information  |  Feedback
Biblical Economics - what most people don't know the Bible teaches about economics
All I Have Commanded - an exhaustive list of what Jesus expects of His followers

WORDS WE HOPE TO HEAR ONE DAY
"Well done, good and faithful servant; you were faithful over a few things,
I will make you ruler over many things.  Enter into the joy of your lord"
(Mt. 25:21 NKJV)

 WORDS ABOUT INVESTING
If you have not been faithful in the unrighteous mammon, who will commit to your trust to true riches?" (Lk. 16:11 NKJV)

WORDS OF WARNING
The Apostle Paul wrote, "Now godliness with contentment is great gain. We brought nothing into the world and it is certain that neither can we take anything out. So having food and clothing we will be content with that. But those who want to get rich fall into temptation and a snare and into many foolish and harmful desires, that plunge people into ruin and loss; because the love of money is a root of all kinds of evil; in their greediness some have been led away from the faith and have impaled themselves on many distresses." (1 Tim. 6:6-10 NKJV)

 TERMS OF USE
This information is public domain.  Jesus said, "Freely you have received, so freely give." (Matthew 10:8b)

DISCLAIMER
The information on this page is the responsibility of Mr. E. Jay O'Keefe, but all your decisions are your own responsibility.


This web page was last updated on 07 August 2011 .