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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (2789)	6/19/1999 11:48:00 PM
From: Mike Buckley	Respond to of 54805

A lot of people have commented that LindyBill's accomplishment is ever more amazing considering he didn't use options or margin. His most recent successes have been the result of concentrating his holdings instead of diversifying them. Understanding that, consider the Motley Fool's Rule Breaker portfolio. It is just shy (by a couple of months) of being five years old. Their results are 68% annualized compared to the S&P 500 which is 26% including dividends over the same period of time. The portfolio changed its tactics when it changed its strategy. Prior to the strategy change it was the Fool Portfolio. After the strategy change it became the Rule Breaker portfolio. Even so, it still has four stocks from the Dogs of the Dow strategy. It has 13 stocks, most in different industries but with a strong concentration related to the Internet (AOL, AMZN, ATHM, eBAY) and other technology stocks (Iomega, 3DFX). The most common theme among the non-Dow stocks is the strong leaning toward companies doing business with consumers (all of the aforementioned stocks plus Starbucks and, indirectly, Amgen.) The one short is Trump. If the portfolio did more than one trade per year that wasn't part of its Dow strategy or wasn't related to its recent change in strategy, I'd be surprised. There were no margins. No options. And an annualized return of 68% with its fifth anniversary just around the corner. Pretty amazing. --Mike Buckley