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)


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.


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.


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...