Day 91: Best Correction Ever


“It is not necessary to do extraordinary things to get extraordinary results.” - Warren Buffett

I've always felt that it's not important to have all the answers, but rather to know where to go to find them. We all make mistakes, the key is to learn from them. Fortunately my mistake earned the MLH Portfolio I nice +10.35% gain.

The Mother's Little Helper portfolio was up today (+0.65%) for a gain of +$4,354.38. Overall gain to date: +$85,256.11 (+14.60%). 35 stocks are now in the black, 10 are still in the red, 1 was sold out in a merger. The S&P 500 is up +3.20% since our inception date.

Today marks the first day of running the corrected portfolio. After receiving a lot of feedback and some careful deliberation I decided that I would run both the original portfolio and the corrected portfolio simultaneously until the end of the year.

As a reminder, I found an error in the way I selected the original stocks back on December 27, 2016. The error was adding additional stocks every time I ran my test for which companies to include. I made an incorrect assumption that all these stocks met my basic set of criteria but they didn't. The corrected portfolio didn't eliminate all the stocks that were in the red, it eliminated only those that would not have passed the required criteria and I accepted that list. The final corrected portfolio is simply a subset of the original portfolio, it is not a new set of stocks. I then built the portfolio with the same buy prices on December 27, 2016 that were in the original portfolio. You will notice that the number of shares has also changed. I am maintaining the same equal weighting in the portfolio. Instead of reducing the portfolio dollar amount I simply increased the share amounts to invest approximately $13,000 in each equity instead of roughly $5,000.

By the way, the original portfolio was up today (+0.24%) for a gain of +$1,489.44. Overall gain to date: +$25,446.80 (+4.25%).

Please note that I have removed the column in the portfolio with a dollar sign to designate which stocks I own in my personal portfolio; it was simply difficult to keep that updated. Below is the new disclosure that will appear in all posts.

Stay Invested,

Clay Baker

Disclosure: I am personally invested long in these stocks that appear in the MLH portfolio and may purchase or sell share withing the next 72 hours. I am also invested in other stocks that do not appear in the MLH portfolio: BA, BRK.B, CELG, CSCO, CTXS, CVX, DOW, DVAX, FB, IBM, NTES, NVDA, OMER, PFE, PG, RDHL, SCHW, THO, TWX, VEEV, VZ, XLNX, XOM

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.

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This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice.
This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.

© 2016 by Clay Baker all rights reserved