SI Portfolio vs. Buffett Portfolio – Rules.
Below are the latest set of revised Rules for the Portfolios.
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SI Portfolio versus Buffett Portfolio – Rules (Rev.2).
1) The SI Portfolio will consist of 10 stocks chosen by the majority votes received for those stocks. There will be no votes against.
2) Stocks that are in Warren Buffett’s current holdings (see goo.gl cannot be nominated for the SI Portfolio.
3) If the final place, or places, in the list of 10 stocks is, or are, contested by a stock, or stocks, with the same number of votes, then only these stocks will be presented for another vote (e.g. say there are 9 stocks with 4 votes or more and 6 stocks with 3 votes each, then the 6 stocks will be up for a vote for the final 10th. place).
4) If more than 2 stocks, in a particular market sector, qualify for the top 10 in the SI Portfolio, then only the 2 stocks with the greatest number of votes will be chosen from that sector.
If 3 or more stocks, in the same market sector, have the same number of votes and also qualify for the top 10, then those stocks will have to be voted on in order to obtain the top 2 stocks from that market sector.
5) The final list of 10 stocks chosen will remain unchanged in the SI Portfolio for a full 9 month period. There will be no removing or adding of stocks in that period of time unless a stock is de-listed from its exchange.
6) After 9 months has elapsed the SI Portfolio can be changed by a maximum of two stocks per year. These new stocks will be chosen and voted for in the same way as were the original 10 stocks.
7) The Buffett Portfolio will be chosen from Buffett’s top 10 largest holdings, in terms of dollar value, at the start of the challenge. Stocks in the Buffett Portfolio will only be replaced with his new top 10 when adjustments are made to the SI Portfolio at the end of the initial 9 month period and then yearly thereafter.
8) Should a stock be removed from the existing Buffett Portfolio then another stock from Buffett’s holdings, preferably from the same sector, will be added. That stock will be selected by agreement between Sergio H and bruwin.
9) Stocks for the SI and Buffett Portfolios will be purchased in equal US Dollar amounts of $5000 per stock.
10) The dividends paid out for each stock will be added to that stock as and when it is declared.
11) The closing date for submission of stocks for the SI Portfolio is 31st. July 2012.
12) The commencement date for the comparison between the SI Portfolio and the Buffett Portfolio will be the 17th. August 2012, with the stock prices based on the closing prices of the stocks on that date.
13) After every 6 month period, commencing from 17 August 2012, we will use the total available accumulated dividend to purchase additional whole number of shares in that company that has performed the worst to date in terms of “% Gain”. If the accumulated dividend is insufficient to buy at least one share of the worst performing company, then shares will be bought of the second worst performer, and so on. This action will be applied to all four of the Portfolios, including the “SPY Comparison”, even though it only has one item.
14) An additional amount to purchase shares will be derived from the difference between the initial Gross Amount allocated to each Portfolio to purchase shares minus the actual amount used to purchase all of the whole number of shares for the Portfolio. This action will be applied to all four of the Portfolios, including the “SPY Comparison”, even though it only has one item. |
