2007 Portfolio Returns

The performances of the two 2007 recommended portfolios show great disparity in each stock's return.

Some stocks were smashed while others provided outstanding performances (Returns ranged from -71% to +167%).

It is important that you look at the performance of the portfolio globally rather than focusing on each stock. It is perfectly normal that some stocks provide poor performance. No investment strategy can systematically pick winners.

Many investors are reluctant to sell stocks at a loss (see Psychology of Investing).
With mechanical investing, at rebalancing time, you should sell all stocks (unless it still passes the screen), not just the ones with positive returns.

In fact, with mechanical investing, you pick portfolios of stocks, not individual stocks. You should therefore:
  • not pay much attention to the performance of each stock,

  • Buy or Sell all stocks in the portfolio at the same time (or around the same time).


The performances of each stock are shown below mainly to illustrate the large difference between the best and worst stocks.

Cornerstone Growth 2007 Portfolio

Symbol Company Name 2007 Returns
APN Applica Incorporated
3.1%
CHAP Chaparral Steel Company
94.1%
SYX Systemax Inc.
18.2%
NTY "NBTY, Inc."
-32.6%
CHTR "Charter Communications, Inc."
-60.8%
PMTR Pemstar Inc.
3.4%
MTW "Manitowoc Company, Inc."
63.9%
KBALB Kimball International
-42.3%
FIA Fiat S.p.A. (ADR)
31.7%
SKX "Skechers U.S.A., Inc."
-41.5%
BW Brush Engineered Material
14.6%
SPAR "Spartan Motors, Inc."
-22.0%
CGA Corus Group plc (ADR)
10.9%
GRA W.R. Grace & Co.
35.3%
TTEC "TeleTech Holdings, Inc."
-10.6%
PCLN priceline.com Incorporated
167.4%
RKT Rock-Tenn Company
-4.8%
SNP China Petroleum & Chemical Corp. (ADR)
64.7%
KMX "CarMax, Inc"
-27.2%
CAL "Continental Airlines, Inc."
-45.4%
ALB Albemarle Corporation
15.8%
KKD Krispy Kreme Doughnuts
-71.6%
  Cornerstone Growth 2007 Portfolio
7.5%


Magic Formula Investing 2007 Portfolio

Symbol Company Name 2007 Returns
NXG NORTHGATE MINERALS CORP
-10.6%
PTEN "Patterson-UTI Energy, Inc."
-15.3%
NVR "NVR, Inc."
-18.3%
RC Grupo Radio Centro SA (ADR)
23.3%
VPHM ViroPharma Incorporated
-41.8%
FTO Frontier Oil Corporation
46.7%
FCX Freeport-McMoRan Copper & Gold Inc.
86.5%
CKR "CKE Restaurants, Inc."
-25.7%
BVN Minas Buenaventura SA (ADR)
101.8%
ARLP "Alliance Resource Partners, L.P."
1.6%
TX Ternium S.A. (ADR)
33.2%
PPD "Pre-Paid Legal Services, Inc."
39.1%
IPS IPSCO INC
70.4%
PCU Southern Copper Corporation
97.9%
NTO NORTHERN ORION RESOURCES INC
108.7%
MRO Marathon Oil Corporation
33.9%
WDC Western Digital Corp.
46.5%
WNR "Western Refining, Inc."
-0.1%
HOC Holly Corporation
-0.9%
MTEX "Mannatech, Inc."
-55.0%
  Magic Formula 2007 Portfolio
26.1%


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