|
November 2006 |
2006 YTD |
Last 12 months |
Annualized rate,
life of portfolio |
| Ted Portfolio |
-2.4% |
10.8% |
10.3% |
12.9% |
| S&P 500 |
1.9% |
14.2% |
14.2% |
13.2% |
Mortgage (cost of capital) |
0.4% |
4.8% |
5.3% |
|
December 2006 |
2006 YTD |
Last 12 months |
Annualized rate,
life of portfolio |
| Ted Portfolio |
6.0% |
17.5% |
17.5% |
15.2% |
| S&P 500 |
1.4% |
15.8% |
15.8% |
13.4% |
Mortgage (cost of capital) |
0.4% |
5.3% |
5.3% |
New investments: Wal-Mart $45 call (WWTAI) @ $6.70; UTI @ $19.375; CAB @ $25.21.
Sold: OSTK @ $14.81
Overstock killed my November, and was a drag on the year, and, like Blockbuster, I seem to have sold it near the bottom. I got back into the Wal-Mart calls just as it had bad news that drove down the option, though it started to recover in the last week. But a good December, led by Carmax, pushed me back ahead of the S&P, if not by a lot.
It was a volatile year: three swings of at least 20%.
My hold of Carmax was the best investment of the year, a near-double that almost compensated for stupid decisions with Overstock and Blockbuster. My return for the year would have been 9% higher if I hadn't given up on Blockbuster, and another 10% or so higher if I had avoided Overstock. I suppose I need to avoid turnaround companies where I'm not happy with the product or service, even if I think the stock is underpriced: Pier One and 1-800-Flowers, which I still hold, were losses for the year, too. (On the other hand, I made some good money with Six Flags, though that I held on to a little too long.) Hasbro, Berkshire, Nationwide, Safeco, Discover, and short-term shorts in asbestos stocks produced some good profits.
I need to re-evaluate my cost of capital, since I can now pay off my mortgage entirely.
2007 is off to a rollicking start, already more than 2 points ahead of the S&P.