"So P1 with QQQ factored in provided more than three times the gain of the S&P 500 since the October 2000 buy."
We can cherry pick dates and make arguments why the S&P500 was not down as much as the QQQ in Oct... so it had less to "recover" but that just wastes time as any cherry picking argument ends up doing.
Can you also post what his portfolio #1 has done since inception and compare that to the S&P500?
I did it for the Wilshire5000.
My calculations detailed with confirmation by Mr Smile at home.netcom.com
with all assumptions concludes:
# Brinker's P1 on 01/01/88 $20,000
Brinker's P1 on 07/27/07 $206,144
# Brinker's Reported APR 12.7 %
# QQQQ Effect is 29.0 % or $59,782
# Subtract QQQQ Effect $146,362
# QQQQ Adjusted APR 10.7 %
# Wilshire 5000 APR 12.0 %
Thus is says since the inception of p1, the QQQQ advice has caused it to under perform the market by a considerable amount.
$10,000 compounding at 10.7% between 1/1/88 and 7/27/07 grows to $73,181
$10,000 compounding at 12.0% between 1/1/88 and 7/27/07 grows to $91,848
Difference $91,848 - $73,181 = $18,667 difference per $10,000...
or $18,667 / $73,181 x 100% = 25.5% difference in total portfolio size. |
