Welcome to week 29 of my stock-picking throwdown with Mr. Market. Let's get right to the numbers:
Company |
Starting Price* |
Recent Price |
Total Return |
---|---|---|---|
Akamai |
$22.23 |
$18.06 |
(18.8%) |
Harris & Harris |
$6.22 |
$3.16 |
(49.2%) |
IBM |
$127.64** |
$88.97 |
(30.3%) |
Oracle |
$22.75 |
$15.78 |
(30.6%) |
Taiwan Semiconductor |
$10.34 |
$7.68 |
(25.7%) |
AVERAGE RETURN |
-- |
-- |
(30.92%) |
S&P 500 SPDR |
$125.26** |
$75.62 |
(39.63%) |
DIFFERENCE |
-- |
-- |
8.71 |
Source: Yahoo! Finance.
* Tracking began on Aug. 7, 2008.
** Adjusted for dividends and other returns of capital.
My lead expands again -- by 156 basis points this time. Not because of a string of gains, but because my tech portfolio is more resilient than the S&P 500, which fell another 2%.
Investors are worried. They're worried that the stimulus plan and President Obama's $3.6 trillion budget will transform us into collective-farming socialists. They feel as though Uncle Sam has mugged us. And they're unwilling to risk capital for fear that he'll do it again.
The week in tech
A valid concern? That's debatable. But I've long suspected that our national mood would get worse before it got better. I stacked my tech portfolio with cash-rich money-gushers because I believed that they'd be less susceptible to a stock market tantrum.
So far, I've been proved right. Yet my thesis is now under assault following a tough week for tech. On Tuesday, Google's
Apple
The iEmpire's board didn't help matters when Arthur Levinson, chief executive of Genentech
Fortunately, the tech world also had two bright spots. On Monday, Garmin
Don't look so surprised. History shows that panicky markets like these reward prudence in picking stocks -- only bet on the best -- and patience in waiting for gains. That's how David Gardner produced a decade of 20% returns in the real-money Rule Breaker portfolio. Tom Gardner's "simpleton portfolio" was also a 10-year winner. I believe that, with these five tech stocks, I will achieve similar success.
Checkup time!
Now let's move on to the rest of today's update:
- In a week where most stocks fell, Akamai defied the skeptics, up just less than 2%.
- IBM this week helped itself to a heaping helping of stimulus pie when it signed deals with four hospital groups to outfit them for electronic medical records. Big Blue now has more than 1,000 hospital clients worldwide.
There's your checkup. See you back here next week for more tech stock talk.
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