I originally setup the 10 stocks for 10 years portfolio in April of 2005. In order to track performance I setup a marketocracy portfolio but had to make some adjustment to comply with the diversification rules. In December of 2006 I announced a new 11 stocks for the next 10 years (9 are the same, I dropped First Data Corporation, which had split into 2 companies and added Tesco and Yahoo). Now I will add Templeton Emerging Market Fund (EMF) making it 12 stocks for the next 10 years. I like the emerging market area and liked the concentration in China and southeast Asia the Dragon fund offered. I still do, but given the rapid rise in the Chinese market especially other markets look more attractive than previously. EMF will allow for a wider geographic representation.
At this time the stocks in the marketocracy portfolio in order of returns –
Google (134% return, 15% of the marketocracy portfolio, 12% of portfolio if I were buying today)
PetroChina (127%, 7.5%, 8%)
Amazon (92%, 6%, 6%)
Templeton Dragon Fund (73%, 11.5%, 10%)
Toyota (69%, 10%, 10%)
Cisco (54%, 6%, 8%)
Tesco (14% [22.55 purchase price on Dec 11th 2006]*, 0, 10%)
Templeton Emerging Market Fund (EMF) (15%, 2%, 4%)
Intel (6%, 4%, 8%)
Pfizer (-6%, 4%, 8%)
Yahoo (-12%, 4%, 6%)
Dell (-23%, 6%, 10%)
In the marketocracy portfolio I have several positions under 2% of the portfolio (in the suggested portfolio these stocks are not included). I do this to comply with marketocracy’s diversity rules – I also have about 14% in cash (for the same reason * plus they still won’t let me by Tesco). In the marketocracy account I sold the First Data stocks (they issued shares of Western Union and then the First Data company itself was taken private about 6 months later).
I occasionally purchase or sell small amounts to re-balance… (I have sold a small portion of Templeton Dragon Fund and Amazon and bought some PFE and Templeton Emerging Market Fund in the last few month). I still would like to find an energy company I like to hold in addition to PetroChina. The current marketocracy calculated annualized rate or return (which excludes Tesco – reducing the return, and has a significant cash position reducing the return) is 15.8% (which is .5% below the S&P 500 return for the period – in addition to the other reductions in the return, marketocracy subtracts the equivalent of 2% of assets annually to simulate management fees – as though the portfolio were a mutual fund). View the current marketocracy Sleep Well portfolio page.