It has been over 10 years since I originally posted my 10 stocks for 10 years portfolio. 7 of those 10 are still in my portfolio for the next 10 years.
Since April of 2005, the portfolio Marketocracy calculated annualized rate or return is 7.1% (the S&P 500 annualized return for the period is 6.9%). Marketocracy subtracts the equivalent of 2% of assets annually to simulate management fees – as though the portfolio were a mutual fund. Without that fee, the return beats the S&P 500 annual return by about 220 basis points annually (9.1% to 6.9%).
Since the last update, I have added Gilead to the portfolio. I also dropped PetroChina and Templeton Dragon fund (as I had mentioned I would do).
The current stocks, in order of return:
| Stock | Current Return | % of sleep well portfolio now | % of the portfolio if I were buying today | |
|---|---|---|---|---|
| Amazon – AMZN | 736% | 12% | 9% | |
| Google – GOOG | 400%* | 21% | 15% | |
| Danaher – DHR | 129% | 8% | 8% | |
| Apple – AAPL | 85% | 17% | 17% | |
| Toyota – TM | 50% | 8% | 10% | |
| Intel – INTC | 46% | 7% | 8% | |
| Pfizer – PFE | 21% | 6% | 6% | |
| Cisco – CSCO | 14% | 3% | 3% | |
| Abbvie – ABBV | 1% | 6% | 8% | |
| Gilead – GILD | -6% | 6% | 8% | |
| Cash | – | 6% | 8% |
The current marketocracy results can be seen on the Sleep Well marketocracy portfolio page.
Related: 12 Stocks for 10 Years, Jan 2014 Update – 12 Stocks for 10 Years – 12 Stocks for 10 Years: January 2012 Update – October 2012 Update – 12 Stocks for 10 Years, Oct 2010 Update
I make some adjustments to the stock holdings over time (selling of buying a bit of the stocks depending on large price movements – this rebalances and also lets me sell a bit if I think things are getting highly priced. So I have sold some Amazon and Google as they have increased greatly (and I have added to ABBV and GILD at nice prices). These purchases and sales are fairly small (resulting in an annual turnover rate under 2%).
I would consider selling Cicso. I also would like to find a good natural resource stock or two if I can find good stocks. I do feel the portfolio is too concentrated in technology and medical stocks so I am would choose a stock with a different focus if it were close to as good as an alternative focused on technology or health care, but I will also buy great companies at good prices even if that results in a less diverse portfolio.
I don’t try and sell significant portions of the portfolio and have a large cash balance to time the market. I will, however, sell some of the individual positions if I think the price is very high (or to rebalance the portfolio a bit).
The market has gone down a fair amount recently and may go down more. It may be in that downdraft I will find a nice candidate to add at an attractive price.
If you wonder why the Apple return isn’t higher, I debated adding it at the outset but decided against it. So I only started adding Apple in 2010 and added to that position over the next several years.
* Marketocracy seems to have messed up the returns for Google (probably due to the split); this is sad as their purpose for me is to calculate returns, but my guess is between 350-450%
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