I almost didn’t write here for a year so I came back today and was checking what I wrote last time I was around. So I want to verify how anyone that read my last stocks recommendations during the stock panic would have fared with my picks.
This was my post from last year: https://principleinvesting.wordpress.com/2011/06/15/stock-panic-yet-again/
Here the results.
Stock price on the date of the post, June 15, 2011. Stock price today. And % change.
USB 23.99 34.93 45.60%
WFC 26.55 36.13 36.08%
STI 25.41 29.91 17.71%
BAC 10.5 9.55 -9.05%
C 38 34.79 -8.45%
NVDA 16.77 13.84 -17.47%
AAPL 326.75 691.28 111.56%
GOOG 502.95 709.68 41.10%
ARMH 27.82 28.37 1.98%
AKAM 28.99 39.03 34.63%
INTC 21.42 23.37 9.10%
MSFT 23.74 31.21 31.47%
BRK-A 110700 133000 20.14%
So if you bought 1 single share of each …
You would be sitting on a 20.50% profit today if the market didn’t scare you back then. Not bad.
Now, you will notice that this is not a fair calculation since some stocks are worth more in $ than others. For instance, BRK-A is huge so the percentage change of it compared with others would affect the portfolio a lot if only 1 share was picked.
So I proceeded to calculate it in dollar amount. I created a portfolio of $1000 on each stock (obviously with brk-a you can’t but you could use brk-b instead). The result is even better, if you had purchased $1000 on each of the stocks you would be having a profit of 24.19% today.
On top of this add dividends, which I didn’t consider on this calculation. The good news is that some of them are still very undervalued!
It pays off to keep calm on stock market panics.