Update on the Buy List

Yesterday was a very good day for our Buy List. We beat the S&P 500 by 0.86% which was our fifth largest margin of the year. This come on the heels of Monday, which was our third best day of the year, and last Wednesday which was our best day of the year against the market. In absolute terms, yesterday was our fifth best day of 2006 (up 1.91%).
Through yesterday’s close, we’re still trailing the market for the year, 5.19% to 3.85%. But the gap has closed considerably in the past month. Since August 9, the Buy List is up 7.84% compared with 3.73% for the S&P 500. Our daily volatility is 17% greater than the market.
Both SEI Investments (SEIC) and Harley-Davidson (HOG) reached new 52-week highs yesterday. It’s always interesting to see what the big winners are in your portfolio. I never would have though that Dell (DELL) would lose 27% this year or that SEIC would be up 45% by September.
Of course, I also have this blog to talk about my mistakes. This year, the dumb moves were Dell (DELL), Medtronic (MDT) and UnitedHealth (UNH). The smart move was diversification, so the dumb moves haven’t overwhelmed me. December is just three months away, and that’s when I overhaul the Buy List, so I’m already thinking of what to keep and what to ditch.
Even though Home Depot (HD) is down for the year, I still like the stock, if not its management. I’ll also have to decide what to do with Wachovia (WB) once it joins the Buy List. I’ll probably get another financial. I also should have focused on some smaller stocks. All 20 stocks have a market cap of at least $20 billion.
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Posted by on September 13th, 2006 at 9:31 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.