Friday, November 23, 2007

top 5 stock picks - 6 month update

About 6 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 6 month check up on their performance vs. the appropriate index.

Manulife Financial + 0% vs. / XFN Canadian Financials ETF - 9.4%
Walgreens -11.1% / S&P Consumer Staple Index - 1.5%
FedEx -11.8% / Dow Jones US Transport Index - 29.3%
Lowes - 30.0% / S&P Consumer Discretionary Index - 1.9%
Johnson & Johnson +4.8% / IYH U.S. Healthcare ETF -3.1%*

Overall my 5 stocks had an average return of -9.6%, while their benchmarks had an average return of -9.0%.

6 months is a very short time horizon, but so far I seem to be just behind the index which is surprising given the extremely poor performance of Walgreens as well as Lowes. Goes to show how poor the markets have been that 8 of the 10 issues are down in a 6 month period. The next update will be at the one year mark, which will be around May 24, 2008.

*changed this benchmark going forward due to availability of quote.


Dividends4Life said...

Lowe's is one that I have been watching for some time. They have started to pay higher dividend increases.

Best Wishes,

Paul said...

Top 5 on my list was C, now down about 33% vs. -25% or so for BKX, so it looks like you are doing great!