BeatTheStockMarket.com, an online investment newsletter that guarantees to beat the stock market, released their returns for the first eleven months of 2004. The newsletter once again outperformed the S&P 500 through November 30 (a gain of 22.94% versus 5.6% for the S&P 500). For the past twelve months, their model stock portfolio returned 35.4%.
Since inception in 1998, the model portfolio has returned 34.6% per year (609.6% overall), has produced a gain each year, and has beaten the S&P 500 seven out of seven years. Sell signals for the portfolio have an average return of 85.7% and portfolio turnover is low.
Even during the three-year bear market, their model portfolio produced gains each year. While the market lost (-39%) during the bear market, BeatTheStockMarket.com's model portfolio produced a gain (+21%).
The model stock portfolio has also easily outperformed Warren Buffett's Berkshire Hathaway stock over the last six and a half years (609.6% versus Berkshire's 82.1%).
Following are a few of the stocks from the newsletter’s model portfolio and the stock’s performance following the newsletter's buy signal:
- Marine Products Corp. +539.3% (recently sold)
- Fording Canadian Coal Trust (FDG) 385.6%
- Gen-Probe Inc. (GPRO) 231.8%
- Zimmer Holdings (ZMH) 156.8%
- Rockwell Collins Inc. (COL) 150.2% (sold on 10/28/2004)
- Imagistics International Inc. (IGI) 137.7%
- Cimarex Energy (XEC) 133.5%
- SCS Transportation Inc. (SCST) 132.4%
- Ambassadors Group (EPAX) 128.1%
While most of the newsletter's portfolios are designed for long-term investors, the newsletter has a Short-Term Portfolio in which individual stocks are held for only a few weeks. This new methodology, started in August, has provided subscribers with a return of 44.02% in fourteen weeks, a period in which the S&P 500 rose only 6.9%. Annualized, this portfolio's return is 207.7% per year.
BeatTheStockMarket.com also features a model option portfolio. Thus far, in its first fifteen months of existence, the portfolio has returned 67.6% per option. Below are a few of the call options recommended by the newsletter and the option’s performance following the newsletter's buy signal.