Saturday, September 25, 2010

Update on My Portfolio/Results

2010 continues not to be a grand year for my MFI portfolio. Here is the chart showing my performance relative to the Russell 3000 and 2000. Note all lines are below 0% AND that I have lost ground on the benchmarks in 2010.

It is easy to say that as I sold a chunk of my portfolio June 29th and the market has been up since then that that cost me. But that is not the case. As I have documented numerous times (and can be seen in MagicDiligence performance in 2010) the MFI system hasn't been all that hot throughout the year.
  • The stocks I sold on that date (it was over 60% of my portfolio) are down 5.4% since then.
  • The stocks I kept have fared a bit better... down 3.2%.
  • The stocks I have bought since then are essentially flat.
  • And finally I am still 21% in cash.
So it wasn't a "bad" move.

I do not know what I will be doing with my cash. I am still trying to move more towards dividend plays. Possible stocks down the road include:
  1. MSFT,
  2. more INTC,
  3. HRB (worth the risk?)
  4. DLX (not sure why I struggle pulling the trigger)
  5. more CHKE or UNTD
  6. I have trouble buying ELNK or USMO, though every time I look at USMO I am astounded by it.
  7. Possibly a defense stock, RTN, GD or LMT (probably my favorite)?
  8. BKE
  9. AZN
  10. SGU should they drop
USMO has been on my monthly tracking portfolios 41 distinct months. The average gain has been a whopping 18%... though the volatility around that amount has diminished the overall gain.




Re your potential 10 list, I would offer you a suggestion of using a further criteria and only buy those companies wherein the projected sales increase next quarter versus the same quarter last year is an increase of 10% or more. Those that would qualify are MSFT, INTC, DLX, and UNTD.

Jeff P

Marsh_Gerda said...

Jeff - thanks for the note. I checked out your blog, it is nicely done. I have to admit that once people start discussing calls and puts my head starts spinning. At some point (like when I retire) I will have to take the time to thoroughly understand.