Wednesday, March 28, 2007

CNBC Million Dollar Portfolio Challenge Update

I am happy to report that as of last night, I am now in the top 1% in the CNBC Million Dollar Portfolio Challenge at #4577 out of what appears to be about a half million participants.

I was going to keep this news under wraps until the weekend, but since I like to call market tops a little early, I thought I'd share the news today in the event my position starts to 'correct' a little.

Briefly, energy and copper stocks have helped propel me to my current standing and I am heavily weighted in oil, gas and uranium at the moment. In most stock contests, it pays to take ridiculous risks in hopes of lucking into a triple digit return. I have not yet succumbed to that temptation. Instead, making largely incremental gains here and there, I am up 27%. As long as I continue to outperform the market and move up the leader board, I will not be putting all my chips on my favorite number -- until perhaps the last 2-3 weeks of the competition.

For those who may be interested, the photo to the left is of Clifford Brown, one of my favorite trumpet players. I figured that if I were going to toot my own horn, I should also acknowledge the work of a true master, who, sadly, had so little time to dazzle us with his talent.

Update: According the Portfolio Challenge blog, the top ten contestants are already sitting on 100% gains, so I may have to rethink my strategy sooner rather than later...


dk said...

Nice going. I slipped into the Top 5% a few days back myself. I did so rather unwisely, using an enormous portfolio of 15 stocks. It's gained me 18% while reducing beta, but it's not the path to 100% gains - LOL!.

Well done, Bill.



Bill Luby said...

Hi David. Of course the greater feat is risk-adjusted return, but, sadly, the point of these contests is to maximize risk...which explains why I am down to a single stock 'portfolio' for now.

Keep up the good work,


F. said...

I am in the top 1000 and my first trade was on Monday 3-26-2007. Overextended small caps are the way to win.

Bill Luby said...

Nicely done, F -- and belated thanks for your comments on the use of the total put to call ratio.

F. said...

Great blog. I too have been studying volatility indexes rigorously since last fall. There really is a lot of important market data hidden in them.

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