First, a quick overview for the folks who joined the blog recently.
The goal of this portfolio is very simple.
Invest and grow $1,000 using the OSV Action Scores to quickly filter and select fundamentally sound companies.
Lester is the owner of the portfolio and for a detailed look at how this case study came about, click through the following links.
Lester is also not the typical value investor. His forte is in technical analysis and he is new to value investing and fundamental stock analysis. He is smart in that he has a game plan and is focused on utilizing his strengths in technical analysis as opposed to trying to learn everything about accounting, fundamental analysis and stock valuation. Put simply, he leverages Old School Value to do the value investing work for him.
With the portfolio having started mid last year, his portfolio ended 2017 looking like this.
Small caps and value stocks did not do well last year. To see his portfolio stay ahead of both the Russell 2000 and S&P is an impressive start.
The INVEST1000 portfolio returned 14.1% vs the S&P’s 13.4% and Russell2K’s 10%.
2018 started the way 2017 ended. Up close to 10% before we that speed hump in the road at the end of January and early February.
Lester shot me an email with the following update on his take on portfolio management during this period.
Learned a few gems in this market “correction”:
Using a brokerage without advanced trading orders stink. Happy I did it with a small amount of capital. Side note: Robin Hood improved their order types, so now I can finally place stop loss and target profits. I was going to move to Interactive Brokers, if they didn’t implement this.