Aug 13
ICLWager Story – Part II
As the debate between index investing and selecting stocks using Take $tock continued, I offered to set up a sample portfolio that would following the recommendations of the T$ program. When the Quality rating of the stock turned red, it would be sold out of the portfolio and a new “all green” stock would be selected as its replacement. As long as the Quality rating maintained a green or yellow rating, the stock remained in the portfolio.
The wager portfolio was fully populated on October 31, 2003 and was turned loose to run five years. We are about two and one-half months from ending the wager. The complete details of all the trades over the past four plus years can be found at this URL.
If the ICLWager portfolio does not double in five years, I win the wager, but if it does double, then I lose the wager. This was a wager I wanted to lose as I could easily afford to pay if I lost.
As I write this entry, the ICLWager portfolio is outperforming the VTSMX benchmark, but it is not doubling, and likely will not reach that lofty goal. Nevertheless, it is significant that the portfolio is doing better than the total market, as measured by the VTSMX index.
Photograph: Hillsboro, OR air show