Update on suggestions from 2011

I was going over old posts and decided to update my suggestions from 2011.

It looks like ages ago now, but back then, people were panicking over the stock market. There was a big sell-off and people were running away into bonds. I suggested a few stock picks back then, here is the original post:

https://principleinvesting.wordpress.com/2011/06/15/stock-panic-yet-again/

How would it have performed if you had bought $1000 on each of the 13 suggestions in 2011 and held to today?

 

Well, $13000 invested on June 15, 2011, when everyone was panicking would be $57653 today. That’s a 343% return.

A couple of comments about the portfolio.

1. ARMH got bought by Softbank in 2016. Ironically it is the only position that lost money. I think they bought it super cheap and probably would be worth much more today.
2. Apple and Google did a split during these years.
3. Excluding dividends, the portfolio would be $51391 today. A 295% return. Not bad, but the dividends really added up during the years, especially on Apple, Nvidia, Microsoft, and Intel where it added close to or more than 100% additional return.
4. It looks easy to check now the price from 2011 and think that holding to that portfolio was a piece of cake. The reality is that during the years, Apple, Google, Microsoft, Intel, Wells Fargo, Nvidia and so on, had close to 50% drops where most people got out of them and missed on the coming gains. Keep that in mind next time you are thinking of selling a stock.

 

Advertisement