DJ, Obviously, tech has been very effective for you.
However, the breakdown of the 319 stocks that beat the Index over 1,
3, and 5 years is:
Financial - 90
Services - 55
Health - 40
Technology - 38
Retail - 35
Industrial Cyclicals - 27
Consumer Durables - 15
Consumer Staples - 13
Utility - 4
Energy - 2
A general observation is that the "winners" generally have 1 or more
of the following characteristics: 1) huge cash flow from operations,
2) above-average and consistent ROE, and/or 3) consistent EPS growth.
I was equally surprised how unimportant some factors are in investment
performance. For example, I have focused on Current Ratio as a
qualatative statement regarding the condition of the Balance Sheet.
However, GE has a current ratio of .8 and Clorox is .7. Likewise,
revenue growth did not have the importance that I assumed it would. I
think I need to rethink these issues.
BTW, the 72% figure was YTD through 11/30.
Berney |
