How You Could Have Trounced Berkshire Hathaway, S&P 500 and Russell 2000 in the Last 7 Years by 50% or More

Jun302016 Value Stock Guide Portfolio Performance

These are significant margins.

This July, Value Stock Guide Portfolio completes 7 years in the public eye. Since we just finished first half of the year 2016, I want to take this time to recap the performance of the portfolio this year and the long term record.

Please note that this record was achieved starting year 2009. As we all know, value stocks have underperformed the overall market since the great recession in 2008. However, we have not only done better than the value indices, we have also done better than the overall market, whether you lean large caps (S&P 500) or Small Caps (Russell 2000). We have also outperformed Berkshire Hathaway during this time.

A 7 year record is a long term record and is a testament to the discipline and consistency in our investment approach.

Let’s Look at the Performance Numbers

As of Jun 30, 2016. Inception: Jul 23, 2009. Last Year and Last 5 Years data is for calendar year. All returns are total returns and assume reinvested dividends. VSG returns are net of actual commissions incurred in the portfolio, while Russell 2000 index and BRKA returns assume ZERO commissions paid
Portfolio Performance VSG Russell 2000
small cap index
Berkshire
Hathaway (BRKA)
Value of $100K since inception $299,573 $211,028 $232,059
Extra Return with VSG - $88,546 $67,514
2016 YTD 1.35% -0.02% 6.17%
Last Year -9.77% -4.41% -12.48%
Last 5 Years 71.32% 55.17% 64.22%
Cumulative since Inception 199.57% 111.03% 132.06%

 

Small Cap investors have closed to doubled their investment in the last 7 years. This is very close to the approximation known as the Rule of 72 for a 10% annual return compounded. Warren Buffett has compounded investors’ capital much better in this time. If you had started with Value Stock Guide 7 years ago, you would have almost tripled your investment by now.

For a $100K starting portfolio, the difference is quite large.

- You would have $88,546 more than some one who invested in a small cap index fund

- You would have $67,514 more than some one who invested in Berkshire Hathaway (I have recently added this as a benchmark to track VSG performance against)

- And while this is not shown in the table above, you would have $57,303 more than some one who invested in a S&P 500 index fund

Now we are starting a period of Value outperforming Growth and Momentum styles. Where do you want to invest your money for the next 7 years or more?

Start Your Value Stock Guide  Premium Membership at 20% Discount

This year is also the 5th year anniversary of opening up the Premium membership to investors. I opened up the service in April of 2011 and shortly thereafter I signed up my first paid member (the service was privately offered to a few friends and family earlier). The first member is still a member today.

To mark the 5th year of the service, I am offering the Premium membership to the next 100 new members at 20% discount. Only for the month of July.

Just go to the Premium description page, read the details of the membership and then click the button below to sign up.