Workshop Portfolio

<FOOLISH WORKSHOP>

A Workshop Portfolio?

by Ethan Haskel (Cormend@aol.com)

Baltimore, MD (Jan. 27, 1999) -- It's pretty amazing how the Workshop has blossomed since Robert Sheard founded it all slightly more than two years ago. We started with a handful of screens and a fairly limited audience. From these modest seeds, we've sprouted to encompass a wide variety of strategies and variations. The Workshop message board is second only to "Ask a Foolish Question" in the number of posts listed -- almost 4000 last month, or more than 100 per day. This output represents a heckuva lot of thoughtful minds scrutinizing the best ideas -- working them and then reworking them some more.

In a very short time, we've matured from the development of theoretical constructs to well-studied portfolios. Many of the best strategies can be, and have been, tested in the real world -- with real world cash. In fact, if so desired, one can build an entire diversified portfolio solely using a combination of these screens. A Workshop portfolio of portfolios, as it were.

How would one go about constructing such a "Workshop Portfolio?" One Fool's solution is supplied by Ben Goldman, longtime Foolish message board contributor. Ben started by analyzing the total and risk-adjusted returns for most of the Workshop's backtested strategies. He decided to go with a portfolio consisting of 25% value stocks and 75% growth stocks. Ben also chose to invest in 20 companies, a number that provided him a comfortable degree of diversification. The result: his "Killer Portfolio," which has returned 34% compound annual growth from 1987 to 1998.

Here's the complete listing of his stocks and the year to date returns (as of this past weekend):

Killer Portfolio                   +3.7%
Standard & Poor's 500 Index        -0.8% 

PEG Semi-Annual (ranked 1-5)        5.6%
Owens & Minor (NYSE: OMI)          -0.5%
Amer. Eagle (Nasdaq: AEOS)         -1.0%
AnnTaylor Stores (NYSE: ANN)       -5.7%
Best Buy Co. (NYSE: BBY)           24.1%
Biogen Inc. (Nasdaq: BGEN)         11.4%

Keystone EPS (ranked 2,4-7)         1.4%
America Online (NYSE: AOL)         -6.4%
Oracle Corp. (Nasdaq: ORCL)        14.7%
Int'l Business Mach. (NYSE: IBM)   -3.0%
Cisco Systems (Nasdaq: CSCO)        7.9%
Home Depot (NYSE: HD)              -6.0%

Spark (ranked 1-5)                  9.2%
Microsoft Corp. (Nasdaq: MSFT)      8.0%
Dell Computer (Nasdaq: DELL)       12.0%
Nokia Corp. ADR (NYSE: NOK.A)      12.7%
EMC Corp. (NYSE: EMC)              11.8%
Guidant Corp. (NYSE: GDT)           1.4%

BSP  (ranked 2-6)                  -1.5%
Schlumberger Ltd. (NYSE: SLB)       8.1%
Kimberly Clark Corp. (NYSE: KMB)   -9.9%
Campbell Soup Co. (NYSE: CPB)     -19.1%
Ford Motor Co. (NYSE: F)            4.9%
BankAmerica Corp. (NYSE: BAC)       8.2%

I'd say, all in all, Ben's off to a very good start. His portfolio seems to be well balanced, including a healthy blend of small company and large company stocks, and not over-weighted in the high-flying tech sector. It'll be interesting to keep tabs on this real-money portfolio to see how it plays out over the year, through thick and thin. Look for regular updates, both in the Workshop message boards and in this column.

For explanations of these screens and more, check out Workshop Screen Explanations and the BSP Home Page.

******
Beating the S&P year to date returns (as of 01-26-99):

Schlumberger (NYSE: SLB)      +3.5%
Kimberly-Clark (NYSE: KMB)    -9.6%
Campbell Soup (NYSE: CPB)    -19.4%
Ford Motor Co.  (NYSE: F)     +5.3%
BankAmerica  (NYSE: BAC)      +8.0%

Beating the S&P               -2.4%
S&P 500                       +1.9%

Compound Annual Growth Rate from 1-2-87:
Beating the S&P              +20.4%
S&P 500                      +17.9%

$10,000 invested on 1-2-87 now equals:
Beating the S&P             $93,100
S&P 500                     $72,100

Check out the latest file updates for the Workshop:
New Rankings | Workshop Returns


Workshop Portfolio


9/28/01 as of ~5:30:00 PM EDT

Ticker Company Price
Change
Daily Price
% Change
Price
AETAETNA INC NEW0.943.36%28.94
BABOEING CO(1.04)(3.02%)33.36
CATCATERPILLAR INC1.112.53%44.91
COGCABOT OIL & GAS 'A'0.693.59%19.90
DDDU PONT (EI) DE NEMOURS0.992.74%37.14
DGXQUEST DIAGNOSTICS(0.45)(0.73%)61.42
EKEASTMAN KODAK0.421.31%32.49
GMGENERAL MOTORS1.393.38%42.55
LHLABORATORY CORP AMER HLDG(NEW)1.141.42%81.21
MOPHILIP MORRIS COS(0.76)(1.55%)48.24
NEWPNEWPORT CORP0.261.90%13.97
NVRNVR INC(0.54)(0.38%)140.41
PKXPOHANG IRON & STEEL ADS1.097.51%15.61
PVNPROVIDIAN FINANCIAL1.075.64%20.04
QCOMQUALCOMM INC(0.40)(0.84%)47.16
RJRRJ REYNOLDS TOBACCO HLDGS(0.69)(1.19%)57.31
SLESARA LEE CORPUnchg.Unchg.21.09
UNFIUNITED NATURAL FOODS0.563.18%18.15
WMIWASTE MANAGEMENT(0.01)(0.04%)26.74

Overall Return -- total % Gained (Lost)
  Day Week Month Year
To Date
Since
Inception
(12/24/1998)
Workshop1.30%7.32%(12.02%)(20.66%)(18.91%)
Comparable S&P 500n/an/an/an/a(19.07%)
S&P 500 (DA)1.95%7.48%(8.33%)(21.22%)(14.88%)
NASDAQ2.02%4.71%(17.46%)(39.68%)(31.41%)
DJIA (DA)1.68%7.07%(11.07%)(17.86%)(2.22%)

Internal Rate of Return -- Annualized Rate of % Gained (Lost)
  Since Inception (12/24/1998)
Workshop(17.62%)
vs. S&P 500(17.63%)

Trade Date # Shares Ticker Cost/Share Price Total % Ret
1/8/0126MO40.9448.2417.82%
1/8/0122RJR50.1057.3114.39%
1/8/0167UNFI16.4518.1510.34%
12/24/9824CAT43.0844.914.24%
1/8/018NVR136.63140.412.77%
1/8/0140WMI27.4426.74(2.54%)
1/8/0150SLE22.5421.09(6.42%)
1/8/0161PKX17.8315.61(12.46%)
1/8/0115DD48.8337.14(23.95%)
1/8/0129AET38.1728.94(24.19%)
1/8/0139COG28.7519.90(30.79%)
1/8/0114QCOM75.5447.16(37.57%)
1/8/018LH134.6981.21(39.70%)
12/27/9918GM73.2642.55(41.92%)
1/8/0118BA59.5333.36(43.96%)
1/8/019DGX114.4961.42(46.35%)
12/27/9920EK65.0932.49(50.08%)
1/8/0120PVN55.5020.04(63.89%)
1/8/0115NEWP74.9613.97(81.36%)

Trade Date # Shares Ticker Total Cost Current Value Total Gain
1/8/0126MO$1,064.50$1,254.24$189.74
1/8/0122RJR$1,102.25$1,260.82$158.57
1/8/0167UNFI$1,102.12$1,216.05$113.93
12/24/9824CAT$1,034.00$1,077.84$43.84
1/8/018NVR$1,093.00$1,123.28$30.28
1/8/0140WMI$1,097.50$1,069.60($27.90)
1/8/0150SLE$1,126.88$1,054.50($72.38)
1/8/0161PKX$1,087.75$952.21($135.54)
1/8/0115DD$732.50$557.10($175.40)
1/8/0129AET$1,107.00$839.26($267.74)
1/8/0139COG$1,121.37$776.10($345.28)
1/8/0114QCOM$1,057.62$660.24($397.39)
1/8/018LH$1,077.50$649.68($427.82)
1/8/0118BA$1,071.50$600.48($471.02)
1/8/019DGX$1,030.44$552.78($477.66)
12/27/9918GM$1,318.62$765.90($552.73)
12/27/9920EK$1,301.75$649.80($651.95)
1/8/0120PVN$1,110.00$400.80($709.20)
1/8/0115NEWP$1,124.37$209.55($914.83)
 
Cash: 
Total: 
$10.80
$15,681.03
 

Key
• S&P 500 (DA) = dividend adjusted. Dividends have been added to the total return of the index.
• DJIA (DA) = dividend adjusted. Dividends have been added to the total return of the DJIA.

Note
Note: The Workshop Portfolio was launched on December 24, 1998, with $4,000 which was invested in the Foolish Four strategy. Approximately $15,000 was added on January 8, 2001, to support five additional mechanical strategies. At that time approximately $1000 was transfered out of the Foolish Four strategy to bring the Foolish Four into balance with the other strategies. (That's why the Foolish Four's overall return is not consistent with stock values.) Such rebalancing will take place each year among the strategies so that each will start out with approximately the same value at the begining of the year. No more cash additions are planned. The first four tables above show the overall performance of the portfolio. Below that we also track the performance of each component strategy. All transactions are announced publicly before being made, and returns are compared daily to the S&P 500 and the Dow. (Dividends are included in the yearly, historic and annualized returns.) Stocks are chosen using strategies developed by the Workshop community.