Boring
Portfolio Report
Tuesday, December 9, 1997
by Greg Markus
([email protected])
ANN ARBOR, Mich. (Dec. 9, 1997) -- The Boring Portfolio marked the anniversary of the attack on Pearl Harbor by taking a torpedo hit amidships, its third such incident in the past two months. The previous two hits were, of course, the implosions of shares of Oxford Health Plans (Nasdaq: OXHP) and, soon thereafter, Green Tree Financial (NYSE: GNT).c Now comes Oracle (Nasdaq: ORCL), which reported last night that the second-largest software company in the world badly missed its numbers. A summary of the company's follow-up conference call is provided for your review.
Oracle's news not only clobbered that stock, sending it down nearly 30% in record-shattering trading volume, it also sent technology stocks of all stripes lower. The Nasdaq tumbled 1.88%, while the Borefolio sank nearly 3%.
Despite the damage that has been inflicted upon the once proud Borefolio, it's still managed to post a bit better than a 30% net gain in less than two years. Although this gain trails that of the S&P 500 significantly, it's perhaps better than a poke in the eye with a sharp stick. It also demonstrates the resiliency of a well-diversified portfolio against even this vivid demonstration of bad luck and perhaps no small measure of bad judgment on my part.
We'll speak more about that, and lessons learned as a result, next time.
For now, though, I've spent the last couple of hours putting my rationale down on paper -- well, on screen -- for selling the Borefolio's Oracle shares. Click here to read it.
That's all for this evening.
Stock Change Bid CGO - 5/16 27.88 BGP - 9/16 29.63 CSL - 1/4 44.56 CSCO -2 3/16 87.50 FCH + 3/8 38.31 GNT --- 29.13 ORCL -9 7/16 22.88 PMSI + 1/8 13.38 TDW -1 3/4 60.94 |
Day Month Year History
BORING -2.99% 0.17% 13.11% 30.15%
S&P: -0.67% 0.10% 31.73% 56.97%
NASDAQ: -1.88% -0.62% 25.52% 55.68%
Rec'd # Security In At Now Change
2/28/96 400 Borders Gr 11.26 29.63 163.19%
8/13/96 200 Carlisle C 26.32 44.56 69.28%
6/26/96 100 Cisco Syst 53.90 87.50 62.34%
3/8/96 400 Prime Medi 10.07 13.38 32.84%
12/23/96 100 Tidewater 46.52 60.94 30.98%
3/5/97 150 Atlas Air 23.06 27.88 20.89%
11/6/97 200 FelCor Sui 37.59 38.31 1.92%
2/2/96 200 Green Tree 30.39 29.13 -4.15%
11/21/96 150 Oracle Cor 32.43 22.88 -29.47%
Rec'd # Security In At Value Change
2/28/96 400 Borders Gr 4502.49 11850.00 $7347.51
8/13/96 200 Carlisle C 5264.99 8912.50 $3647.51
6/26/96 100 Cisco Syst 5389.99 8750.00 $3360.01
12/23/96 100 Tidewater 4652.49 6093.75 $1441.26
3/8/96 400 Prime Medi 4027.49 5350.00 $1322.51
3/5/97 150 Atlas Air 3458.74 4181.25 $722.51
11/6/97 200 FelCor Sui 7518.00 7662.50 $144.50
2/2/96 200 Green Tree 6077.49 5825.00 -$252.49
11/21/96 150 Oracle Cor 4864.99 3431.25 -$1433.74
CASH $3021.10
TOTAL $65077.35
