I originally setup the 10 stocks for 10 years portfolio in April of 2005. The stock market has declined quite a bit since that time. Four of the 12 stocks currently have positive returns and 8 have losses (the market is down 8% annually). I still feel very happy with the makeup of this portfolio overall. The current stocks, in order of return:
|Stock||Current Return||% of sleep well portfolio now||% of the portfolio if I were buying today|
|Amazon – AMZN||91%||10%||8%|
|Google – GOOG||49%||15%||12%|
|Templeton Dragon Fund – TDF||40%||10%||10%|
|PetroChina – PTR||11%||10%||10%|
|Cisco – CSCO||-17%||6%||8%|
|Toyota – TM||-21%||9%||11%|
|Templeton Emerging Market Fund – EMF||-25%||4%||5%|
|Danaher – DHR||-28%||6%||9%|
|Intel – INTC||-35%||5%||7%|
|Tesco – TSCDY||-38%||0%||10%|
|Pfizer – PFE||-45%||6%||6%|
At this point I am most positive on Google, Toyota and Templeton Dragon Fund. I am still wary of Dell; it has fallen 73%. I have not sold any Dell, still the percentage of the actual portfolio invested in Dell has dropped to 4%, I have also reduced the amount I would invest now to 4% (and I am leaning to selling it). I am satisfied with Pfizer, at this price and yield. (and also like having some exposure to health care).
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) is -4.2% (the S&P 500 annualized return for the period is -8.3%) – marketocracy subtracts the equivalent of 2% of assets annually to simulate management fees – as though the portfolio were a mutual fund – so without that the return is about -2.2%). The portfolio is beating the S&P 500 by 4.1% annually (which is actually quite good, though still that means just losing less than the S&P 500. Also it is a bit confused due to to Tesco not being included. View the current marketocracy Sleep Well portfolio page.
Related: 12 Stocks for 10 Years Update – June 2008 – 12 Stocks for 10 Years Update (Feb 2008) – posts on stocks – investing books
I have made a few changes since the initial setup: adding Tesco, Templeton Emerging Market Fund and Danaher and selling First Data (after it split into two companies). I also owned Yahoo for a period: bought after the First Data sale and then sold to purchase Danaher.
In order to comply with the marketocracy diversification rules and deal with not being able to buy Tesco (in marketocracy) I own fairly small amounts of several other stocks in the portfolio (that are included in the marketocracy return): Target (TGT), Car Max (KMX), British Petroleum(BP), United Technologies (UTX), Euronet Services (EEFT) and ATP Oill and Gas (ATPG).