6-Month check on stocks

Similar to how Barron’s gave themselves a report card on their 1st half of 2011 stock picks, I tabulated the return of the stocks that I am invested in from Jan 3rd to Jun 30th of this year. 

Stock     Price change

  • XOM     +10.36%
  • PFE      +18.87%
  • WTR        -1.79%
  • JNJ         +7.78%
  • ADP      +13.78%
  • LLTC       -3.45%
  • INTC       +8.04%

Assuming equal weight in investments this gives an overall return of 7.7%, exclusive of dividend reinvestment.  The S&P 500 returned 3.83% for the first half.  So I exceeded the benchmark by 200%.  I continue to believe that the discounted earnings and dividend flow model* gives an investor a powerful tool to value stocks, which can be used to create a portfolio that can meet or exceed the return of an index over the long term. 

*someone (N.Y.) pointed out that in my forecasting, I am not actually estimating cash flows, but rather flows of earnings and dividends, and discounting those items.


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