Alternative Benchmark

Several people have asked why I use the Russell 3000 index as a benchmark as opposed to a pure value benchmark. The answer for me is that I am not trying to compare how I am doing with one value approach vs a benchmark value approach, but rather how am I doing against the broad market.

Just for yucks though, I did compare my performance against the Russell 2000 Value index. While I trail the Russell 3000 by a whopping 20%, I would trail the value index by a mere 10%... do I feel better? Heck no! I do wonder why I am doing worse than the indices and worse than my general tracking portfolios, which might be behind overall by about 5%. It is easy to think that I am just a poor stock-picker. And that very well may be the answer. Though I have had modest success (and continue to do so) outside of MFI.

It is getting harder (given the chasm) to catch the benchmark. When the market goes up and both portfolios go up by the same %, I lose ground as the benchmark percentage is on a bigger number.

I did add WH to my portfolio last week. It would easily qualify as an MFI stock if they has all the detailed elements on their balance sheet listed for the most recent quarter. WSTG and KSW are both about to hit their one year anniversary. Both are down, WSTG is down 31%. I will likely sell WSTG, but renew KSW for a 2nd year (I think it is still on the list!). Hmm, it is not, but clearly should be as I show below. BTW, if you are trying to maximize your returns by doing the opposite of me, then I suggest (or don't suggest) WSTG.

	ksw
Operating Income After Depreciation	6.07
Minority Interest - Income Account	-
Income for Calculation	6.07
Market Cap Yahoo	35,000
Share Price	5.70
Market Cap Calc	35.00
Preferred Capital	-
Debt in Current Liabilities	-
Long-Term Debt	-
Cash and Short-Term Investments	18.12
Excess Cash	16.83
Enterprise Value	18.17
Property Plant and Equipment - Net	0.25
Receivables	20.78
Inventories	1.11
Other Current Assests	0.36
Working Cash	1.30
Accounts Payable	17.82
Current Liabilities - Other	5.73
Invested Capital	0.25
Earnings Yield	33%
ROIC	2389%