A little while ago in post number 20928, I made the following comment:
I don’t think beating the market is difficult.
Just put your money into a small selection of quality compounding businesses.
I would suggest MIDD TDG MKL GOOGL AMZN SBUX V MA CASY DIS
Go away for ten years and you will beat the market no problem.
But that is too easy, so instead we spend our time diving in and out of speculative story stocks, semi-conductors etc. And wonder why it is so hard.
Now I will retire to a dark room and try and work out why I am incapable of following my own advice…
This started me thinking. I had also been involved in a little writing project recently, and with that in mind as well, I said to myself, ‘If that’s what I think, why shouldn’t I nail my colours to the mast and put up a portfolio which I am confident will beat the market?’.
So I’ve done just that. You can see the result at http://www.digigrator.com/the-portfolio/
I haven’t set myself any definite rules other than a 5 year time frame, but I fully expect very little activity, if any in this portfolio.
I would welcome any comments you may have on this selection.
It would also be interesting to see any alternatives that you have.
(Note: My personal portfolio differs from this - but it is spread over a number of brokerage accounts in the UK and USA, has a number of option positions, and is skewed by history, so would not make a great example for a starter portfolio. But I do own stock in all the companies in my proposed ‘market-beating’ portfolio).