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.
Related: Sleep Well Portfolio home page – 10 Stocks for 10 Years Update (Feb 2007) – 10 Stocks for 10 Years Update (Dec 2005)
Comments
8 Comments so far
Toyota’s 32 top executives received just over $12 million in salaries in the 12 months ended March. Lets see Toyota made something like $13,000,000,000 in profits. With the top 32 executives getting about $20,000,000 that is .15% of earnings…
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[...] I am happy to own a tiny portion of Google and glad they are making decisions like this. Now just because I think there is a good case to be made for exceeding the targets that doesn’t mean that hiring more people is necessarily good. It is perfectly possible Google is hiring too many people and making a bad prediction about how these people will benefit Google in the long run. I am just saying I strongly support not tying yourself to short term numerical targets, if you predict a better decision requires taking actions that will cause the target to be missed. [...]
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