Wednesday, August 22, 2007

top 5 stock picks - 3 month update

About 3 months ago I picked 5 stocks that I thought were undervalued. I also liked the 5 company's prospects at that time as long term investments, which I still do.

Here is a 3 month check up on their performance vs. the appropriate index.

Manulife Financial + 1.9% vs./ XFN Canadian Financials ETF - 5.0%
Walgreens + 0.6% / S&P Consumer Staple Index - 1.5%
FedEx + 5.8% / Dow Jones US Transport Index - 6.3%
Lowes - 6.0% / S&P Consumer Discretionary Index - 8.6%
Johnson & Johnson -2.5% / S&P Healthcare Index -6.8%

Overall my 5 stocks had an average return of 0%, while their benchmarks had an average return of negative 5.6%. 3 months is a very short time horizon, but so far I seem to be beating the benchmarks.

(Please note currency was not taken into account here, as the values are in real terms)

3 comments:

FourPillars said...

Pretty good picks.

The fact that the markets have fallen is a pretty good test of how stable those stocks are.

Keep doing this update - very interesting.

Mike

telly said...

Good stuff.

I have to say, I drive by a Walgreen's every day and often think of your blog when I do. I know you're a big fan of this company.

I have a few friends that are pharmacists at either Walgreen's or Rite Aid. Apparently Rite Aid pays better but Walgreen's is known as the more prestigious of the two to work at. I should inquire as to why that is.

moneygardener said...

Thanks Mike. I was surprised at these performances as I thought Lowes and FedEx had been poor performers but I guess they were better than their peers.

telly,

aahh yes, my love affair with WAG continues...I am actually thinking that if the stock stays near these levels with the CAD$ where it is I may double my stake soon...