Monday, January 28, 2008

Portfolio A1 Bounces Back

While it was not a big bounce, the fact that Portfolio A1 bounced 1% more than the benchmark S&P 500 index did last week has to be considered a good sign. After 49 weeks, the portfolio’s 6.4% gain still compares quite favorably to the 8.6% loss in the SPX over the same period.

New addition Terra Industries (TRA) led the way with an 8.6% gain for the week, after taking the fertilizer baton from previous portfolio anchor, The Mosaic Company (MOS).

The 2008 year to date numbers (through Friday) show that Portfolio A1 has fallen faster than the SPX – -12.8% vs. -8.7% – with the superior cumulative performance numbers for the portfolio largely a reflection of a superb fourth quarter in 2007. Some may see this as a possible anomaly, but this portfolio is set up to ‘fish for whales,’ a theme I will expound upon in the future.

There no changes to the portfolio this week.

A snapshot of Portfolio A1 is as follows:

2 comments:

Anonymous said...

If publicly available, where can we find a detailed description of the stock screening and ranking factors used to determine the composition of Portfolio A1?

And what are its buy and sell trigger criteria?

Bill Luby said...

Hi Anon,

The majority of what I have revealed about Portfolio A1 can be found in Portfolio123.com: The Engine Behind Portfolio A1 and the link in that post to an earlier post on the subject.

The stock screener is use has not been made public, but it is derived from the Balanced4 ranking system that Portfolio123 makes public.

In terms of selling criteria, there are only two: a drop of 20% or more from the high during the holding period; and a drop in rank below a specified threshold.

For buys, these are only made when cash is available from a sale. New buys will search for the highest ranked stock that satisfies minimum price, market cap and volume requirements -- and does not violate my sector concentration rule.

More info is here.

I hope this helps.

Cheers,

-Bill

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