I originally setup the 10 stocks for 10 years portfolio in April of 2005. With Microsoft’s move to buy Yahoo I have sold Yahoo and replaced it with Danaher, a stock I have been considering for this portfolio from the start. I have also sold some Templeton Dragon Fund since the last update, as I indicated I would. Unfortunately, Petro China just missed reaching the price I had set to sell a portion of the position before falling dramatically (the gain at the last update was 298% now it is “only” 132%).
The performance since the last update has not been good but that isn’t much of a concern to me. The long term prospects remain very good for this portfolio, I believe. At this time the stocks in the sleep well portfolio in order of returns –
| Stock | Current Return | % of sleep well portfolio now | % of the portfolio if I were buying today | |
|---|---|---|---|---|
| Google – GOOG | 137% | 16% | 14% | |
| PetroChina – PTR | 132% | 8% | 8% | |
| Amazon – AMZN | 106% | 7% | 6% | |
| Templeton Dragon Fund – TDF | 85% | 10% | 10% | |
| Toyota – TM | 44% | 10% | 10% | |
| Templeton Emerging Market Fund – EMF | 39% | 3.5% | 4% | |
| Cisco – CSCO | 32% | 6.5% | 8% | |
| Tesco – TSCDY | 9% | 0% | 10% | |
| Danaher – DHR | -4% | 4.5% | 8% | |
| Intel – INTC | -4% | 4% | 6% | |
| Pfizer – PFE | -11% | 6% | 8% | |
| Dell | -40% | 6% | 6% |
The Yahoo position was closed at an 11% loss. It was the second of the original 10 stocks to be effectively removed due to changes in ownership. At this point I am most positive on Google, Petro China, Toyota, Templeton Dragon Fund and Tesco. I am wary of Dell – they seem to be moving in the wrong direction, but I am willing to give them longer to improve.
In order to track performance I setup a marketocracy portfolio but had to make some minor adjustments. The current marketocracy calculated annualized rate or return (which excludes Tesco – increasing the return I would guess no more than 10 basis points) is 10.5% (the S&P 500 annualized return for the period is 9.2% – 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: 12 Stocks for 10 Years Update (Jun 2007) – 10 Stocks for 10 Years Update (Feb 2007) – 10 Stocks for 10 Years Update (Dec 2005)
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[…] Microsoft’s offer for Yahoo I am replacing Yahoo with Danaher in the 12 Stocks for 10 Years portfolio. Other stocks in the portfolio include Google up 137% since purchased, PetroChina up 132%, Amazon […]
I bought some more Google yesterday. Google has fallen from almost $750 a share to $450 a share. Now before some people get excited about how bad that is: until about 18 months ago Google had never been as high as $450 a share.
Current returns: Google – GOOG 163%; Amazon – AMZN 124%; PetroChina – PTR 114%; Templeton Dragon Fund – TDF 90%…
Current returns: Amazon 91%, Google 49%, Templeton Dragon Fund – TDF 40%, PetroChina 11%, Cisco -17%…
[…] Danaher (DHR) – $103 and 5% (I like this company but honestly the biggest reason for including it is to get some more diversity in the portfolio. I added it to the 2005 portfolio in 2008.) […]