For the year 2009, the portfolio gained +27.5%. The S&P 500 index was up +26.5%. Both include dividends.
It’s nice to edge out the S&P 500, since I live in the US and that’s the benchmark used to measure the performance of money managers here. It’s especially good since I’ve held lots of cash (earning nothing) most of this year. In hindsight, I should’ve put that cash to work back in the spring. But, like I said, that’s hindsight.
If I happened to go a long stretch where I didn’t at least match the index, I’d seriously consider switching away from managing my own portfolio. I’d have to. Regular readers know the Controlled Greed portfolio accounts for the vast majority of my liquid net worth, including just about all of my retirement funds. I couldn’t afford to under-perform just for the kicks of picking my own stocks.
Thankfully, that hasn’t been the case. But last year the portfolio lost nearly 40% -- so I’ve got some work to do as my brokerage statements continue reflecting the battering taken in 2008 (and the last half of 2007).
Here's how the portfolio positions looked on December 31, 2009:
Cash 22.1%
SPDR Gold ETF 10.3%
DirecTV Group 9.4%
Fairfax Financial 7.5%
King Pharmaceutical 7.1%
EGI Financial 6.8%
Microsoft 6.5%
Cheung Kong ADR 5.4%
BCE 4.8%
Superior Industries 4.7%
Geeknet 4.5%
NipponKoa Insurance 4.4%
Capital Southwest 4.2%
Media General 1.2%
3i Group PLC 1.1%
Some notes. These figures are not audited, just my calculator and me. So if I'm off a bit, sorry.
The portfolio stretches over three accounts: my regular brokerage account and two retirement accounts. The VAST majority of my liquid net worth is in the positions above. The "Controlled Greed portfolio" isn't some little portfolio on the side. It is real money. I’m working like the dickens not to lose it all and live out my life in soup kitchens.
Remember that I recently made some changes in the portfolio since the New Year. I scaled back on Microsoft, and put roughly 20% of my assets into four gold mining plays (Newmont Mining, Goldcorp, Agnico-Eagle Mines and the Market Vectors Gold Miners ETF).
I’m holding my SPDR Gold ETF, the double-sized position established in the summer. This means that my gold ETF and gold mining stocks together account for around 30% of my portfolio.
Fairfax Financial is a nice-sized holding. Remember that I've sold enough of this stock a while back to get my original capital out of it. The holding is a free ride.
I also sold enough of my original stake in DirecTV Group to make DTV a free ride as well. Then I inherited more DTV shares when one of my Liberty Media tracking stocks merged with the company. That’s why DTV remains a large portfolio position.
I'm mostly content with all these stocks, except for Media General and 3i Group. MEG has been a disastrous investment and represents money lost. 3i Group may fall into that category as well.
Let’s see what 2010 has in store. I’ve gone on record as saying we’re in a bull rally in a larger bear market. So I think we’ve got more bad news in the future for stocks. And I’d love to be proved wrong.
It’s nice to edge out the S&P 500, since I live in the US and that’s the benchmark used to measure the performance of money managers here. It’s especially good since I’ve held lots of cash (earning nothing) most of this year. In hindsight, I should’ve put that cash to work back in the spring. But, like I said, that’s hindsight.
If I happened to go a long stretch where I didn’t at least match the index, I’d seriously consider switching away from managing my own portfolio. I’d have to. Regular readers know the Controlled Greed portfolio accounts for the vast majority of my liquid net worth, including just about all of my retirement funds. I couldn’t afford to under-perform just for the kicks of picking my own stocks.
Thankfully, that hasn’t been the case. But last year the portfolio lost nearly 40% -- so I’ve got some work to do as my brokerage statements continue reflecting the battering taken in 2008 (and the last half of 2007).
Here's how the portfolio positions looked on December 31, 2009:
Cash 22.1%
SPDR Gold ETF 10.3%
DirecTV Group 9.4%
Fairfax Financial 7.5%
King Pharmaceutical 7.1%
EGI Financial 6.8%
Microsoft 6.5%
Cheung Kong ADR 5.4%
BCE 4.8%
Superior Industries 4.7%
Geeknet 4.5%
NipponKoa Insurance 4.4%
Capital Southwest 4.2%
Media General 1.2%
3i Group PLC 1.1%
Some notes. These figures are not audited, just my calculator and me. So if I'm off a bit, sorry.
The portfolio stretches over three accounts: my regular brokerage account and two retirement accounts. The VAST majority of my liquid net worth is in the positions above. The "Controlled Greed portfolio" isn't some little portfolio on the side. It is real money. I’m working like the dickens not to lose it all and live out my life in soup kitchens.
Remember that I recently made some changes in the portfolio since the New Year. I scaled back on Microsoft, and put roughly 20% of my assets into four gold mining plays (Newmont Mining, Goldcorp, Agnico-Eagle Mines and the Market Vectors Gold Miners ETF).
I’m holding my SPDR Gold ETF, the double-sized position established in the summer. This means that my gold ETF and gold mining stocks together account for around 30% of my portfolio.
Fairfax Financial is a nice-sized holding. Remember that I've sold enough of this stock a while back to get my original capital out of it. The holding is a free ride.
I also sold enough of my original stake in DirecTV Group to make DTV a free ride as well. Then I inherited more DTV shares when one of my Liberty Media tracking stocks merged with the company. That’s why DTV remains a large portfolio position.
I'm mostly content with all these stocks, except for Media General and 3i Group. MEG has been a disastrous investment and represents money lost. 3i Group may fall into that category as well.
Let’s see what 2010 has in store. I’ve gone on record as saying we’re in a bull rally in a larger bear market. So I think we’ve got more bad news in the future for stocks. And I’d love to be proved wrong.
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