Virtual portfolio update - 9/3/13
As I mentioned in a previous blog post, although the Fool is an awesome site, the 0-100 player rating system doesn’t do a very good job of showing you which players are really great investors, and which are just really good at “gaming” CAPs points. In order to more accurately track performance, I created a virtual fund at Marketocracy.com, and will be posting my virtual holdings/performance every 3-6 months. I would encourage other Fools to do the same. IMO Marketocracy is a great supplemental scorecard to the Fool, but is certainly not a replacement. (They have no community)I have two reasons for posting these: 1) To facilitate learning and encourage the exchange of investing ideas on the Fool. And 2) To keep myself honest, and have a proven record of performance (positive or negative) over the long-term.
Also, the reason that I’m going to be concentrating on my virtual portfolio, and not my real-life portfolio, is because I will actually be winding down my real-life portfolio in the coming months. I’ll be starting school in a few weeks, and I think I can get a better, safer return on investment on my education than my stock portfolio. I will probably exit most of my real-life positions over the next year or so, and reallocate that capital towards tuition. No new real-life positions will be added until after graduation in 2.5-3 years.
In lieu of a real-life portfolio, my virtual portfolio will track my picks and performance for the next 2-3 years.Here is my first 6 month update. A virtual 13-F, if you will.The current holdings of my virtual fund, Teego Capital (inception Mar 2, 2013), as of today are as follows:
symbol - value - % of portfolio
LUK - $255,900.00 - 22.93%
DTV - $239,973.00 - 21.51%
IBM - $104,877.15 - 9.40%
NOV - $90,875.34 - 8.14%
AAP - $83,749.53 - 7.51%
CHRW - $83,099.50 - 7.45%
COH - $82,992.00 - 7.44%
MSFT - $43,566.60 - 3.90%
ORCL - $43,497.00 - 3.90%
cash - $87,297.69 - 7.82%
total = $1,115,827.81 from an original amount of $1,000,000
New buys: LUK, IBM, CHRW, MSFT, ORCL
Sells: BBBY, BP
Unchanged: DTV, NOV, AAP
Since inception virtual returns have been 10.5% (22.17% annualized) vs 8.7% (18.21% annualized) for the S&P 500.
TEEGO CAPITAL is a long term value-oriented virtual fund that seeks to deliver market-beating returns by buying a small number of very high quality businesses at fair-to-cheap prices. We believe excessive diversification is madness, and try to be as concentrated as possible on our very best ideas.
Thanks for reading!