Checking back in with another portfolio update. In the last few weeks we’ve seen continued rotation from growth stocks to value and cyclical stocks as the interest
When I started this portfolio, I made a commitment to hold my investment choices for at least one year. This means holding the same portfolio through thick or thin, despite what the market has done for me recently.
I’m not going to lie, it has been kind of hard to maintain the same portfolio. I’m always tempted to rotate more into stocks that I feel like are undervalued at certain points in time, or to rotate out of portions of my portfolio that are underperforming. However, intellectually I know that nobody can predict the future of the market, and I chose my portfolio with a 1 year horizon for a reason, so it’s best for me to not get in my own way and let my informed decisions play themselves out.
I’m going to give you an update on my portfolio’s performance against the S&P 500 as well as show you my top and bottom performing stocks since I started my portfolio.
- S&P 500 from January 4th – March 31st +7.45% ((364.30 – 339.03) / 339.03) x 100
- My portfolio from January 4th – March 31st: +7.97% ((49,095.39 – 6,000 – 307.50) – 39,641.18) / 39,641.18 x 100
Without dividends, I am still beating the market, but just barely. My moonshot growth portion of my portfolio has taken a hit, and SURPRISE – my Stable Yield portion of my portfolio has outperformed lately. Check out the returns for the last month.
Alright, let’s get into my best and worst performing stocks since my portfolio’s inception in November of 2020.
Best Performing Stocks:
- Spirit Airlines (SAVE): +118.22%
- Carnival Corporation (CCL): +86.92%
- Tesla Inc (TSLA): +81.61%
- Invesco Ltd. (IVZ): 79.14%
- Ally Financial: (ALLY): 55.74%
The list you see above tells a somewhat consistent story. The re-opening trade and financials are doing well in the last few months. Back when my portfolio was created, I assumed that fear in the market was a bit overblown, knowing that we would likely get a vaccine within a few years.
I picked Spirit airlines specifically because I thought it had the most to gain as a budget airline from a Covid recovery because it is almost exclusively non-work travel. While airlines that support business travel may still have slower recovery due to businesses needing to travel less, Spirit could cash in more from the recovery.
Worst Performing Stocks:
- Splunk Inc (SPLK): -28.29%
- Alibaba (BABA): -20.70%
- Beyond Meat (BYND): -17.99%
- Teladoc (TDOC): -14.47%
- Salesforce Inc (CRM): -14.32%
The loser list has a pretty clear theme as well. The potential for a big reward brings big risk. If you pick a growth stock that has ascended to a very high valuation, you have the potential to come back down to earth. This list makes me a bit sad though, as two companies I really like for the long term are on here (Salesforce and Beyond Meat). However, in the short term, I am happy to live with some losses as these are the types of companies that will provide the big gains if you strike at the right time.
I am not a financial advisor, and this post is for entertainment purposes only.
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