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:
Sorry if this is supposed to be obvious: did you include your dividends into the return?
Are you at all discouraged from stock-picking?
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.
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.
Meh, one year is nothing...but I appreciate your candidness. :)
[...]Moneygardener posted top 5 stock picks - 1 year update.[...]
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