I know, you’re probably getting sick of these at this point – but what’s the point of maintaining a website for 6 years if we don’t go back and check out some of the silly/smart claims we made in the past? Also, this will be the last one for a while, at least until we talk about our savings rate around tax time: a retrospective looking at how we’ve done in our friend Nelson’s stock contest (of Financial Uproar fame).
So, let’s make this quick: in a somewhat unrealistic take on investing, notably:
- Dividends aren’t reinvested
- Purchased stocks (or tickers that stop trading, as in BXUC below…)
- Holding period of one year
Of course, this being a retrospective, we’ve extended the holding period to now. Or, Friday’s close, whatever. We purposefully put it after our Monday retrospective on our actual returns because… well, our fantasy picks beat the S&P 500.
Stock Contest Results!
These picks are from our:
Full disclosure: we’ve owned a few of these, but we currently still own PDLI.
|Stock Ticker||Stock Name||Open Price (Split Adj)||Close Price (1/16)||Value|
|PDLI||PDL BioPharma Inc.||6.23||7.51||3013.64|
|VASC||Vascular Solutions, Inc.||11.3||29.79||6590.71|
|TTM||Tata Motors Limited (ADR)||29.45||45.21||3837.86|
|KLIC||Kulicke and Soffa Industries||12.21||14.43||2954.55|
|CACC||Credit Acceptance Corp.||103.55||139.84||3376.15|
|ARLP||Alliance Resource Partners||38.645||39.37||2546.9|
|BXUC||Barclays Long C Leveraged S&P 500||258.47||299.86||2900.34|
|SVXY||Proshares Trust II||66.45||53.42||2009.78|
|XIV||VelocityShares Daily Inverse VIX Short Term||33.91||27.25||2008.99|
Compare that to the S&P’s total returns, which is, of course, based on the S&P Total Return Index from S&P. It’s a little unrealistic – it doesn’t count timing, slippage, fees, taxes and the like, but it’s a good proxy for buying, holding, and reinvesting. We built a calculator which does the math on reinvesting in the S&P 500, the Wilshire 5000, and (almost) any stock you can dream of if you don’t want to do the math in a spreadsheet. But here it is:
Well, I find it humorous that not having skin in the game beat the S&P, even with the in-built advantage (and the fact you can’t sell or reinvest in the stock picking game). But you? You’re probably ready for us to return to the net worth series – so I hope these retrospectives were at least an interesting diversion!