Day 175: Portfolio Outperforms
The Mother's Little Helper portfolio was UP today +$11,112.63 (1.52%).
Overall GAIN YTD: +$159,191.08 (+27.26%)
According to CNN Money our benchmark index, the S&P 500 is up +9.59% Year To Date (http://money.cnn.com/data/markets/sandp/).
I'm looking for other places where the average investor could have put money at the beginning of the year and done as well as we have with a similar amount of risk. I would really love to hear from some of my readers. If you have any suggestions I'd be happy to do a comparative analysis.
The best option I've found so far that closely reflects the approach that MLH has taken, and offers a similar risk profile is the Crossing Wall Street Buy and Hold list. Managed by wall street blogger Eddy Elfenbein, Crossing Wall Street is a list of 25 stocks that Eddy selects and published online. While he calls it a buy and hold portfolio, he does a little bit of trading when a stock doesn't hold up to an original thesis. I'll agree, it's basically a buy and hold strategy.
Eddy has been running this blog since 2006 and is regarded as the best buy and hold blogger by CNN Money. However; in only 2 years 2009, and 2013 did Mr. Elfenbein outperform Mother's Little Helper. YTD Crossing Wall is delivering a +11.77% return, less than half MLH YTD return. Eddy I'd welcome hearing from you, let's do a blog together.
I'm not claiming any special skills or trying to make an argument that I'm personally a better stock picker. Actually I'm astounded that this portfolio is crushing almost everything else on the street. My point all along has been that if you pick good companies and hold them for at least one year, or more, you should outperform the market and the professionals who want to earn fees from your money.
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.