When I posted at the end of last week, some were puzzled because they weren’t the end of the calendar month. To satisfy the curiosity of any who wonder about my results to the calendar end of the month:
Last Friday I was up 21.4% and the three averages I follow were up on average 0.6%
As of Feb 28th (today’s close), I am up 25.0%. The three averages are up 1.1%, down 1.9% and down 2.8%. They thus average down 1.2.
If you think about it, that’s an enormous divergence, and others on this board have done in the same range, or better. Intelligent stock picking does work, whatever you might hear about 20/80 distributions and all the rest. If you are new to the board, read the Knowledgebase, a couple of times.
For Knowledgebase for this board,
please go to Post #17774, 17775 and 17776.
We had to post it in three parts this time.
A link to the Knowledgebase is also at the top of the Announcements column
that is on the right side of every page on this board
Read the Knowledgebase twice. Tonight will read 3rd time.
Really grateful for your thinking because I know nothing.
< whatever you might hear about 20/80 distributions and all the rest
good stock picking helps put you in the 20 rather that the 80
Though I suspect longer success in the equity markets is is very lopsided, certainly not a bell shaped curve . A small number of people make most the money.
And while not popular on this board I think some of them do it by being in and out of stocks at the right times. It was hard to survive the 1930’s by stock picking, particularly if dividends dried up and you lost your job, or your pension vanished.
You may have needed to sell to eat.
Read the Knowledgebase recently as well. Several points puzzled me which I will post about later. Grateful for this board and well thought out Knowledgebase.
I was just talking to my wife about the divergence. Really, I overheard the news talk about the markets being down (I think this was last Friday, I have worked the past 15 days straight so they are running together) but my portfolio has jumped 12% since 2/27.
Since following this board I have grown accustomed to beating the market indexes, heck I barely look at them anymore, but that is a large number.
I don’t know what to make of it, but am leaning to letting the winners run, and add to them as possible.
Thanks again for all you do, and giving us insight to your portfolio to see these divergences.