Austock portfolio versus my model portfolio update (as at 31st March 2012)

Austock portfolio versus model As at the end of March 2012, The model portfolio is beating the Austock portfolio by over 6%, and also beating the ASX 200 Accumulation Index by 1.4%. The Austock portfolio continues to underperform the Accumulation Index by 4.8%.

19 of the stocks in the model portfolio (out of 30 stocks) are beating the accumulation index, while the Austock portfolio has less than half (14 / 30) of its stocks beating the index.

Again this shows that by picking quality stocks, you can outperform the market and the professional stock pickers.

I can’t pick gold stocks, but seem to do ok at small and medium caps

It also shows that I’m absolutely terrible at picking gold stocks, with all four of my stock picks in negative territory. Thankfully, this is just a model portfolio, and not “real” money (although I do own all those four gold stocks – just very small amounts). What the spreadsheet (link below) does show, is that I appear to be ok at picking small and medium cap (cap = market capital) stocks, with 13 out of 16 stocks showing positive returns, and beating the market index.

This further illustrates Warren Buffett’s and Peter Lynch’s comments “invest in what you know” and “stick to your circle of competence”. I know virtually nothing about gold stocks, but a fair bit about small and medium cap industrial stocks.

Blue chips – Not

Another thing this exercise shows is that there are no guarantees with so called blue chip stocks. In the Austock portfolio, only 6 of the 14 stocks from the ASX top 50 are showing positive returns. Beware of the financial advisors pushing you to invest in so called blue chips.

With about 4 months to go before the exercise comes to a finish on the 6th July 2012, my goals of beating the ASX 200 Accumulation Index and the Austock portfolio appears on track.

If you want to have a closer look at the gory details, performance of each stock in detail, I’ve attached a link to the spreadsheet here.

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