Workshop Portfolio

<FOOLISH WORKSHOP>

Killer Portfolio Update      

by Ethan Haskel (Cormend@aol.com)

Baltimore, MD (April 14, 1999) -- We might as well call this Ben Goldman Week at the Workshop. Monday, Jim Stevens tracked Ben's 1999 Killer Net Portfolio as it left the atmosphere. That portfolio, reportedly surviving on nothing but a strict liquid diet of Jolt, has (theoretically, at least) chalked up a 111% gain through yesterday. Although some skeptics have reportedly renamed this portfolio "The Tulip Group," it might make sense to own some of these highfliers as a small portion of your overall portfolio.

Returning to earth, let's direct our attention to Ben's other portfolio, which I profiled three months ago. Titled simply "The Killer Portfolio," I thought it offered an excellent choice for a diversified group of stocks based on some of the best of the Workshop screens. Keep in mind that this portfolio is a real money portfolio, with Ben's hard-earned cash being put to work. The returns represent those calculated from the actual prices paid for the stocks during the first trading day of the year. Here are the updated portfolio returns for the year, as of April 13, 1999:

Killer Portfolio               +21.0%
Rule Breaker Portfolio         +72.7%
Rule Maker Portfolio           +18.4%
Foolish Four Portfolio         +13.6%
Drip Portfolio                  +3.3%
Boring Portfolio                +0.4%

Standard & Poor's 500 Index     +9.3%
Dow Jones Industrial Average   +12.4%
Nasdaq                         +16.4%

PEG Semi-Annual (stocks ranked 1-5)   +28.8%
Owens & Minor (NYSE: OMI)             -32.6%
Amer. Eagle Outfitters (Nasdaq: AEOS) +37.3%
AnnTaylor Stores (NYSE: ANN)          +29.3%
Best Buy Co. (NYSE: BBY)              +73.2%
Biogen Inc. (Nasdaq: BGEN)            +36.7%

Keystone EPS (stocks ranked 2,4-7)    +23.9%
America Online (NYSE: AOL)           +112.4%
Oracle Corp. (Nasdaq: ORCL)           -18.5%
Int'l Business Mach. (NYSE: IBM)       -2.8%
Cisco Systems (Nasdaq: CSCO)          +19.7%
Home Depot (NYSE: HD)                  +8.7%

Spark (stocks ranked 1-5)              +27.0%
Microsoft Corp. (Nasdaq: MSFT)         +24.6%
Dell Computer (Nasdaq: DELL)            +9.1%
Nokia Corp. ADR (NYSE: NOK.A)          +31.8%
EMC Corp. (NYSE: EMC)                  +48.9%
Guidant Corp. (NYSE: GDT)              +20.3%

BSP  (stocks ranked 2-6)                +3.8%
Schlumberger Ltd. (NYSE: SLB)          +22.0%
Kimberly Clark Corp. (NYSE: KMB)        -9.2%
Campbell Soup Co. (NYSE: CPB)          -25.4%
Ford Motor Co. (NYSE: F)                +8.9%
BankAmerica Corp. (NYSE: BAC)          +22.4%
Yowza!

Our little corner of Fooldom has outperformed all the "Official" Foolish portfolios out there this year, with the notable exception of the Rule Breaker Portfolio. While the Rule Breaker Portfolio takes the blue ribbon hands down, not many would argue that it's a diversified portfolio ideally suited for most investors. Currently, for instance, Rule Breaker has two-thirds of its assets invested in two stocks -- America Online (NYSE: AOL) and Amazon.com (Nasdaq: AMZN).

But for a twenty-stock diversified portfolio, "Killer" seems to fit the bill. Keep in mind that our year to date results represent much too short a time frame to jump to any firm conclusions about comparisons with the other portfolios. However, each of the individual components of the portfolio has been backtested for at least 12 years and has strong theoretical underpinnings. For more details about these approaches, check out Workshop Screen Explanations.

We plan to keep a close eye on Ben's portfolios, not only this year, but for many more to come. In future columns, we'll take a closer look at some of the issues confronting investors trying to develop a Workshop portfolio they can call their very own.

****** Beating the S&P year-to-date returns (as of 04-13-99):
Schlumberger (NYSE: SLB)    +25.7%
Kimberly-Clark (NYSE: KMB)  -10.3%
Campbell Soup (NYSE: CPB)   -24.9%
Ford Motor Co.  (NYSE: F)    +8.5%
BankAmerica  (NYSE: BAC)    +23.1%

Beating the S&P                     +4.4%
S&P 500                            +10.1%

Compound Annual Growth Rate from 1-2-87:
Beating the S&P                     +20.6%
S&P 500                             +18.2%

$10,000 invested on 1-2-87 now equals:
Beating the S&P                    $99.600   
S&P 500                            $77,900

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.