Welcome to week 78 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 |
$25.33 |
13.9% |
Harris & Harris |
$6.22 |
$4.30 |
(30.9%) |
IBM |
$125.26** |
$124.00 |
(1%) |
Oracle |
$22.54** |
$23.41 |
3.9% |
Taiwan Semiconductor |
$9.81** |
$9.71 |
(1%) |
AVERAGE RETURN |
-- |
-- |
(3.02%) |
S&P 500 SPDR |
$122.43** |
$108.04 |
(11.75%) |
DIFFERENCE |
-- |
-- |
8.73 |
Source: Yahoo! Finance.
*Tracking began on Aug. 7, 2008.
**Adjusted for dividends and other returns of capital.
A flat week for my three-year tussle with Mr. Market -- I gained just one basis point -- was anything but for a number of stocks.
You'd think Toyota
Other big gainers included Motorola
I'm in favor of the plan, mostly. If I don't buy shares, it'll be because I'm dubious of stocks that sell to governments in general, and the U.S. government in particular. Data from the non-partisan Congressional Budget Office shows that a precipitous decline in federal revenue has created much of the current budget deficit.
The implication? Aggressive spending cuts are virtually guaranteed, which could spell trouble for companies that depend on the feds to be consumers of their products.
The week in tech
Tech stocks should do well enough navigating the spending downturn. Few of Silicon Valley's finest are truly dependent on government patronage. Take Open Table
Google
But it was the jeers that earned headlines, and deservedly so. Google violated users' privacy when it automatically connected new Buzz users to their most emailed contacts, and then made those contacts viewable at their Google profiles. The company has since apologized.
"We quickly realized that we didn't get everything quite right. We're very sorry for the concern we've caused and have been working hard ever since to improve things based on your feedback. We'll continue to do so," wrote Todd Jackson, product manager for Gmail and Google Buzz in a blog post.
At the same time, The Big G showed off more of its hugeness -- and a little loathing for AT&T
I'm also undecided. But if Google does take the next step to compete with telecoms directly, a bid for Level 3 Communications
Besides, history shows that disruption is the rule rather than the exception in tech. The resulting market volatility can destroy even the sturdiest of tech portfolios. Patience and diversification are the keys to unlocking long-term gains.
Look at David Gardner. He produced a decade of 20% returns in the real-money Rule Breaker portfolio by betting on a broad portfolio of innovators, and holding for the long-term. Tom Gardner's "simpleton portfolio" was also a 10-year winner. I believe that, with my tech portfolio, I will achieve similar success.
Checkup time!
Now let's move on to the rest of today's update:
- Leaning on history as a guide, analysts quoted in a weekend feature in Barron's say that Oracle is likely to meet its operating income target with its acquisition of Sun Microsystems. I agree, and I'm as confident as the analysts Barron's quotes are that CEO Larry Ellison will lay off as many as it takes to meet his goal.
There's your check-up. See you back here next week for more tech stock talk.
Get your clicks with more techie Foolishness:
- A gamer finally grows up. (Sniff.) We're so proud.
- Is Steve Jobs becoming Steve Ballmer?
- Senator Dick Durbin is trying to fashion the U.S. tech elite into an instrument of U.S. foreign policy, and that's wrong.