Friday, December 27, 2013

Discretion Is Marevelous

Discretion Is The Better Part Of Valor

As my readers know, I do not really "track" my discretionary purchases.  Not sure why, but I guess I have just never gotten around to it.  So, I suppose there is no time like the present.  I will attempt to measure my open discretionary holdings against the R3K.

Ok, I have created a table showing the R3K gain by stock (if bought on same day) through today.  It is a telling table.

Stock Gain Cost Price R3K Gain
GTAT 63.7%           5.23           8.57 9.0%
GNW 118.3%           7.10         15.51 37.4%
HIMX 50.4%           8.94         13.45 4.6%
ATHM 21.2%         28.80         34.91 3.2%
CS 7.8%         28.75         30.98 3.5%
KLIC 18.6%         11.15         13.22 16.4%
HIG-WT 29.9%         21.24         27.60 12.4%
BAC-WTA 20.2%           5.35           6.43 16.9%
GA 3.0%         11.16         11.27 2.1%
Grand Total 44.0%           9.18         13.21 11.1%

Hmm, all the open discretionary buys have worked out extremely well thus far.  You can see that the old faves, GTAT and GNW are blowing off the doors of the competition.  But HIMX is up 50.4% versus a paltry 4.6%. ATHM is now up 21.2% (had another decent day today) versus 3.2%.  Even sleepy CS is now up 7.8% pour moi.

Of course, there is a little selection bias here.  I have sold some of the lesser performing discretionary stocks. Still the overall 44% to 11.1% is quite telling.  I think we can safely say I have had a satisfactory performance with my discretionary picks.


hjehan said...

Sorry... I follow your site - but I barely passed my only economics course (long ago). So... what is R3K?

Marsh_Gerda said...

R3K is my shorthand for Russell 3000 Index. It is the primary benchmark I use as a metric to determine if my stocks/portfolios do well.