The Financial Log Book - Progress Report on the Portfolio

Entity	Initial Price/ Purchase Date	Price 2013-08-02	Gain/Loss year to date %	Gain/Loss Since Purchase %
Central Fund of Canada (CEF.A)	9.77 2007-09-04	14.82	-29.0	51.2
Silver Wheaton (SLW)	12.37 2007-09-04	22.95	-35.4	85.5
Polaris Minerals (PLS)	10.70 2007-06-01	1.68	63.5	-84.3
MEG Energy (MEG)	44.19 2010-12-29	32.73	2.3	-25.9
Cenovus (CVE)	32.39 2010-07-27	30.58	-2.2	-5.6
Canam Group (CAM)	6.23 2008-12-11	9.97	66.7	54.3
Canadian National Railway (CN)	48.88 2009-04-14	104.36	16.5	115.3
World Fuel Services (INT)	34.10 * 2009-04-14	SOLD
North West Company (NWF)	16.23 2009-05-07	24.09	11.5	48.4
Powell Industries (POWL)	36.75 2009-11-12	50.81	22.3	48.3
Waterfurnace Renewable Energy (WFI)	28.62 2010-04-12	23.32	65.9	-18.5
Orbite Aluminae (ORT.A)	3.24 2011-03-28	0.65	-73.6	-79.9
ABB (ABB-N)	20.18 2012-12-13	22.28	14.1	10.4
Oceaneering International (OII-N)	52.95 2012-12-13	84.41	60.3	59.4
Deere & Company (DE)	88.07 2013-01-03	83.4	-4.2	-5.3
Rocky Mountain Dealerships (RME)	11.89 2013-01-03	13.09	11.4	10.1
HollyFrontier (HFC)	47.95 2013-01-28	45.1	-2.6	-5.9

* INT was split 1:2 on 2009-12-08

Commentary

Precious Metals

I have decided to hold my positions as "insurance" against a financial meltdown.  No one knows where prices will head in the future, and I have the benefit of having established my positions fairly early in the cycle.  Note that I hold no mines directly, having sold most of my positions at a very handsome profit.  Low prices, coupled with high overhead costs and financing difficulties have pummelled precious metals stocks recently.  

The chart does not accurately reflect purchases I made when shares of WaterFurnace and Polaris were depressed.  Sometimes when you have a valued company, it is profitable to buy more shares if you figure that shares are undervalued.  In this instance, it has been profitable.  

I continue to be impressed by the North West Company: a nice gain in the share price coupled with an excellent dividend has enhanced the portfolio.  In a sense, the company has a lock on food and general goods retailing in the far north.  Barriers to entry are high.  This is a core position in my portfolios.  

Orbite Aluminae continues to be problematic.  A glut of aluminum has depressed the share price - this coupled with the usual vicissitudes associated with fledgling enterprises.  In such instances, it never makes sense to bet the farm on such enterprises.  I am learning to take quick profits and buy in later on if the companies have demonstrated their ability to pass developmental hurdles.  

Other holdings in the portfolio have risen in concert with a nascent economic recovery in the United States.  However, I do have my eye on exiting my position with Deere & Company.  I have yet to "figure out" how to invest profitably in agriculture.  Earlier thoughts about the risk of investing in potash have been proven correct.  I remain interested in investing in water management, but have yet to find a "pure play" which is attractive.