I read and studied Graham’s Intelligent Investor nearly 4 months ago. After gaining a good overview of the value investor philosophy, I decided to keep track of some attractive stocks I deemed to have a decent margin of safety. I used Tickerspy to track the stocks. I used Tickerspy because there’s nothing fancy about it—no need to decide about how many shares to purchase, it just puts an equal weight upon each stock pick.
Thus far, my portfolio has gained 25.2% versus the S&P500 (the blue line is my portfolio and the dotted gray line is the S&P).
The two essential elements to the initial success of this portfolio are (1) choosing undervalued stocks and (2) the concentrated nature of the portfolio. Not too bad for just four months, but its still too soon to say whether I could achieve similar long-term performance.
Another reason to be hesitant regarding the success of this portfolio is that it doesn’t necessarily mean I am a good stock picker in real life. I probably would not have made the same decisions if I had been using my own money in a real-life portfolio. Perhaps I would have been more conservative with my choices and allocations of capital, which would have affected my returns. The decisions people make can vary greatly depending on whether their own money is on the line.
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