I originally setup the 10 stocks for 10 years portfolio in April of 2005. In order to track performance created a marketocracy portfolio but had to make some minor adjustments (and marketocracy doesn’t allow Tesco to be purchased, though it is easily available as an ADR to anyone in the USA to buy in real life – it is based in England). The current marketocracy calculated annualized rate or return (which excludes Tesco) is 3.5% (the S&P 500 annualized return for the period is -1.7%) – 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 5.5%).
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||136%||9%||9%|
|Google – GOOG||105%||15%||13%|
|Templeton Dragon Fund – TDF||80%||11%||11%|
|PetroChina – PTR||78%||11%||10%|
|Templeton Emerging Market Fund – EMF||28%||5%||6%|
|Cisco – CSCO||15%||6%||8%|
|Toyota – TM||7%||9%||11%|
|Danaher – DHR||-14%||6%||9%|
|Tesco – TSCDY||-14%*||0%*||10%|
|Intel – INTC||-15%||4%||6%|
|Pfizer – PFE||-38%||5%||7%|
The portfolio is beating the S&P 500 by 5.2% annually (which is actually quite good. 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 – posts on stocks – investing books
At this point I am most positive on Google, Toyota and Templeton Dragon Fund (I am also fairly confident in Tesco, I would like more evidence they will stick to their lean management commitments). I am still not positive on Dell. I have not replaced it yet but probably will remove it in 2009 (I updated the chart above to show I would not buy it today).
Since the March 2009 update PetroChina (total return was 11% now is 77%) Google (was 49% now 105%) and Templeton Emerging Market Fund (was -25% now 28% have performed the best).
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).
* Tesco had a purchase price of $22.55 on Dec 11th 2006 and has paid approximately 40 cents a year in dividends. The current price is $18.20. The -14% return is just an estimate.