Wednesday, June 11, 2008

top 5 stock picks - 1 year update

About one year ago I selected 5 stocks that I believed were undervalued at that time. Just for fun, I update the performance of these stocks vs. comparable benchmarks. Here is the 1 year update:

Manulife Financial -1.4%% vs. / Canadian Financials ETF (XDV) -13.2%
Walgreen -20.2% / Vanguard Consumer Staple ETF (VDC) +0.8%
FedEx -20.3% / Dow Jones US Transport Index (.DJUSTS) - 8.1%
Lowes - 28.1% / Vanguard Consumer Discretionary ETF (VCR) - 23.2%
Johnson & Johnson +4.7% / U.S. Healthcare ETF (IYH) -12.4%

Overall my 5 stocks had an average return of -13% over the past year, while their benchmarks had an average return of -11%. Well, I'm trailing the indexes by 2 solid points after one year. The poor performance of the markets continue to show through as 8 of the 10 securities are down over the year period.

5 comments:

phantasmix said...

Sorry if this is supposed to be obvious: did you include your dividends into the return?

Are you at all discouraged from stock-picking?

pitz said...

The ETFs paid dividends as well...

I don't think MG's comparison of his performance vs. the index is statistically significant, especially considering the relatively small number of stocks he's selected versus the several hundred that comprise the ETFs in question.

MG (moneygardener) said...

phantasmix, not I did not include dividends in the return. I may look at that in the next update. Right now I am assuming that to be a wash between the stocks and ETFs.

No I am not discouraged from stock-picking.

telly said...

Meh, one year is nothing...but I appreciate your candidness. :)

Dividend Growth Investor said...

[...]Moneygardener posted top 5 stock picks - 1 year update.[...]