March 7, 2012
Daily commentary, current portfolio structure and history follow.
Please direct questions and comments to:
Drach Market Research
2910 Kerry Forest Parkway D4-210
Tallahassee FL 32309
Tel. (850) 576-2680
E Mail DrachMkt@aol.com
Position Changes: None.
Major movements (+ or – one point or more among holdings): Home Depot +1.00.
Basic Summary (positions itemized after daily commentary)
Relative performance (market to market) vs. S&P 500 since initiation
This Portfolio Model + 209%
S&P 500 + 160%
Portfolio model initiated 5/5/95, archived and marked to market daily.
Initial S&P 500 level 520.12. Initial portfolio value $520,120.00
Current portfolio value $1,610,983.15, gain 209.73%
These results are reflective as to capital capture and market price of current holdings, itemized below. They do not include cash dividends, interest earned on cash balances, transaction costs, or anything else.
Current Stock vs. Cash Allocation
$1,029,555.99 (64%) stock. $581,427.16 (36%) cash equivalents.
Summary of Closed Positions
Total Positions 459 Average Position
Profit 413 (89.97%) Percentage + 7.19%
Loss 46 (10.03%) Days Held 220
Even 0 ( 0%) Annualized + 11.93%
It is of interest that pricing discrepancies are expanding within the stock market. We attempt to confine our interest to Master List stocks that have demonstrated superior fundamental quality. Within this group, over the past few weeks the majority (around 2/3rds) have advanced.
At the same time, among lagging stocks, the percentage degree of declines has been significantly larger than those advancing.
Keeping in mind we are dealing with a rather homogenous group of stocks, these discrepancies are quite rare.
There is always temporary psychological gratification in accepting the exception. One can develop the impression that they have found friends in siding with the majority when in fact the environment is fiercely competitive. At final count, winning must come at the expense of fellow participants in the form of actual or opportunity cost.