curiouscat.com > Books > Investment > Investing club > Sleep Well Fund Investing Results
Updates: Nov 2014 Update - Oct 2012 update - Jan 2012 - Feb 2011 - Oct 2010 - March 2010 - March 2009 Dec 2006 (adding Tesco) - February 2007 - February 2008
In April 2005 I posted a message to the Curious Cat blog about 10 stocks for the next 10 years. I also setup an fund through Marketocracy, which allows for 3rd party tracking of investing results.
These pages do not represent investment advice (in deciding what investments to make you must consider your unique situation). The pages just provide some information on my experience. I find managing the marketocracy funds educational. You can manage your own fund through marketocracy for free.
I am continuing to manage the fund in that way. I intend to have little turnover. As of January 2012 the return (marketocracy subtracts "management fees" of 2%, in addition to transaction fees, to mimic a real fund's expenses) has been 8.4% annualized (so about 10.4% without the 2% fee)*. The S&P 500 is up 8.3% for the same period (the return is beating the S&P 500 by 210 basis points, without the fees).
The Portfolio, as of 25 Jan 2015 (showing the return on the specified dates):
| Stock | % of fund | Jan 2015 | May 2013 | Feb 2011 | Feb 2009 | June 2008 |
|---|---|---|---|---|---|---|
| Apple - AAPL | 19 | 120% | 22% | 25% | * | |
| Google - GOOGL | 16 | 406%** | 311% | 189% | 105% | 163% |
| Toyota - TM | 9 | 67% | 70% | 25% | 7% | 38% |
| Danaher - DHR | 9 | 127% | 78% | 47% | -14% | 1% |
| Intel - INTC | 8 | 79% | 9% | 2% | -15% | 3% |
| Amazon - AMZN | 7 | 531% | 486% | 361% | 136% | 124% |
| Pfizer - PFE | 6 | 35% | 20% | -20% | -38% | -29% |
| Abvie - ABBV | 5 | 31% | *** | *** | *** | *** |
| Petro China - PTR | 4 | 87% | 101% | 110% | 78% | 114% |
| Templeton Emerging Markets Fund - EMF | 5 | **** | 50% | 70% | 28% | 47% |
| Petro China - PTR | 4 | 87% | 101% | 110% | 78% | 114% |
| Cisco - CSCO | 4 | 36% | 1% | -3% | 15% | 42% |
| Templeton Dragon Fund - TDF | 2 | 118% | 89% | 96% | 80% | 90% |
*Dell was sold in 2010 at a 50% loss and replaced by Apple.
**Marketocray messes up the return on Google, as of the split (which really shouldn't be so hard to cope with, I don't know why they messed it up so badly). Anyway I am just using an estimate by myself for the Google return.
***Abbvie was added in 2013.
**** I don't believe marketocracy has the right return of EMF. EMF has paid large dividends of capital gains and regular income and it seems Marketocracy is failing to account for this. It is complex to figure out the return given the dividends so I won't try.
Tesco was bought 2006 and sold in 2013 for a loss.
Those 10 stocks (now 11) were selected with the main criteria being: "companies with a history of large positive cash flow (that seemed likely to continue that trend)." The rules for setting up a marketocracy required more diversification at that time. I have small percentages in a couple other stocks to comply with marketocracy diversification rules in the actual portfolio. I am leaving Dell as the twelth stock for now, but may well remove it.
I have sold some Amazon over the years as it increased drasitcally. I occassionally make adjustments to the portfolio balance based on allocation mix and/or seemingly significantly overvallued or undervalued securities. But this adjustments are minor: annual turnover is undr 5%, probably under 2%.
The blog updates, referenced at the top, provide more details on the progress and status of the sleep well portfolio. The Templeton Dragon Fund position will be closed, I am just waiting for a better price (so I am calling the current portolio 11 stocks, though TDF is the 12th).
I have been running another mock mutual fund portfolio on Marketocracy since 1993. See more on the Darvamore Fund (see results from inception July 2000 to Jan 2006 the annualized return was 5% v. -.5% for the S&P 500. As of August 2009 the results are: .4% v -2.5% (beating the S&P 500 by 3% after a 2% "expense fee" - or 5% without the fee included).
