Stocks? Pt. 4

Through the last year, the S&P 500 is up from 1462 to 1832 (25.3%), while the Morningstar value portfolio is up 21.2%.

Of the stocks in the original portfolio, Facebook nearly doubled (99%), Amazon was up by 55%, and Applied Materials was up 50%.  Other significant gainers included Microsoft, John Wiley General Dynamics, Amgen, and Bank of New York.   Unfortunately, Potash lost 21%, and Weight Watchers lost 40% over the same period.

The portfolio as a whole slightly underperformed the S&P 500 in a relative bull market, suggesting that blindly purchasing a portfolio of stocks meeting Morningstar’s value criteria may not be an optimal investment strategy, at least in the bull market of the past year.