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%|
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.