4 Year Anniversary of Value Stock Guide Portfolio, And a Recent Sale

July 22, 2013 marks the 4 year anniversary of Value Stock Guide Premium Portfolio.

While I have run my own portfolio for over 18 years now, on July 23, 2009 I turned over my portfolio to Covestor so they can independently audit the performance. The Covestor relationship no longer exists. In January last year, they discontinued tracking of individual portfolios unless I offer a model portfolio on their platform. I decided to not go that route. That level of public knowledge of my picks would have surely ruined the performance me and my members have enjoyed over the years.

It was a gutsy decision to open up my portfolio for public scrutiny in 2009 when the economic shocks of 2008 were still so fresh in investors’ psyche. Value Stock Guide offering was still 2 years away and I felt that I needed a fairly public track record to make my case to the investing public.

That was then. This is now. 4 years later, and having comprehensively beaten the daylights out of the S&P 500 index over this time, I feel really good (performance data as always is at the top of the site, chart on the right sidebar).

My goal has been to average 30%+ annual returns, and so far it has worked to my satisfaction. This year we are already north of the 30% target and it is still July.

The bottom line is that investing with me 4 years ago would have seen you almost triple your money by now – instead of less than double on average in the market.

We Sold ISH Last Week – 43.30% Total Return in 3.5 Months

On July 17, 2013, we sold International Shipholding (ISH) stock at $25.38/share. The shares were purchased on April 1, 2013 for an average cost of $17.83/share. During the holding period, the company also paid $0.25/share in dividends.

It appears to have been added to the AAII Model Portfolio recently, so if you follow AAII and have bought the stock on their recommendation, good luck! The value in the stock is now getting stretched thin and we are already out.

If you want to read the original thesis for investing in ISH, I am making them public. It is in 2 parts – Part 1 and Part 2.

The cash position remains elevated to about 28% which reflects to some extent the hope and greed in the market. This year as the market has continued to pack on the pounds, our sells have vastly outnumbered our purchases. We have been deploying capital in new ideas but frankly speaking I would venture that over 90% of the stocks that are traded on NYSE, Amex and Nasdaq currently have no investment merit.

Finally, I know I have email subscribers and premium members who have followed me and my picks for more than 4 years on twitter and elsewhere. Thank you and look forward to many more profitable years to come. Remember, investing is a process – focus on the journey and the results will take care of themselves.


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