Investment Strategies


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Investment Strategies

This page shows the performance of investment strategies I recommend in my books and The Kelly Letter.


Stock Market Investing
Value Averaging, Double The Dow, and Maximum Midcap, the permanent portfolios from The Neatest Little Guide to Stock Market Investing, are proven winners. The financial crisis of 2008 set most of the market back dramatically, but these strategies have a history of staging remarkable recoveries as they did following the dot com bust, and have already begun doing so again after the subprime mortgage collapse.

Please buy the book (at left) or subscribe to The Kelly Letter to see how the portfolios work.

Growth of $10,000:

The Dow
(DIA)
Page 114
Value
Averaging
Page 110
Double
The Dow
Page 122
Maximum
Midcap
Page 126
1-08
2010
$12,611
2.0% YTD
$15,119
3.2% YTD
$11,240
3.7% YTD
$16,247
7.1% YTD
End
2009
$12,368
19% in 2009
$14,656
47% in 2009
$10,835
37% in 2009
$15,173
66% in 2009
End
2008
$10,401
34% in 2008
$10,000 $7,905
63% in 2008
$9,168
68% in 2008
End
2007
$15,752
6% in 2007
NA $21,097
7% in 2007
$28,495
6% in 2007
End
2006
$14,805
17% in 2006
NA $19,642
29% in 2006
$26,961
10% in 2006
End
2005
$12,710
1% in 2005
NA $15,265
4% in 2005
$24,418
19% in 2005
End
2004
$12,776
3% in 2004
NA $15,906
5% in 2004
$20,604
29% in 2004
End
2003
$12,427
24% in 2003
NA $15,094
51% in 2003
$16,035
60% in 2003
End
2002
$10,000 NA $10,000 $10,000

At the top of page 177, I conclude the ten-year IBM Value Line example with this: “How about a real-life test? Decide now whether you would have held your position or sold it. Then, check IBM’s current price to see how you would have done. To help with your calculations, write down that IBM was $93 and the S&P 500 was 839 on February 3, 2009. Since then, which performed
better?” Find out here.

Investments From The Kelly Letter
These investments are from The Kelly Letter. Articles from the letter are reprinted on the home page of this site, however the names of investments are shown to subscribers only. When I completely exit a position, I then reveal what it was so that anybody can track my performance. For example, until it was sold, Sun Microsystems was called just “Computer” with no ticker symbol. To put this performance to work for you, please try the letter (at left). To read my latest thoughts, please sign up for my free email newsletter at the top or bottom of any page and visit the home page frequently.

ACTION OPENED CLOSED RESULT
Buy E-commerce 5/22/2006, $29.00 Open
Buy Online Media 3/17/2006, $30.00 Open
Buy Semicon Equip 3/8/2006, $18.00 Open
Buy Student Loans 2/10/2006, $36.75 Open
Buy Debt Collector 2/10/2006, $18.45 Open
Buy Computer Security 11/28/2005, $28.00
1/27/2006, $22.50
Open
Buy Semicon Maker 11/16/2005, $25.00
1/31/2006, $21.50
Open
Buy Computer Maker 11/9/2005, $29.00 Open
Buy Mitsubishi UFJ Bank (MTU) 11/3/2005, $13.90 3/8/2006, $14.60 5%
Buy CBOT Holdings (BOT) 10/21/2005, $108 10/31/2005, $109 1%
Buy UTStarcom (UTSI) 10/5/2005, $7.75 10/10/2005, $5.50 29%
Buy Decker’s Outdoor (DECK) 10/5/2005, $23.00
10/28/2005, $17.00
12/22/2005, $28.00 40%
Buy Japan 10/4/2005, $47.20 Sold half of position
2/16/2006, $64.55
Buy Maxtor (MXO) 9/23/2005, $4.25 12/28/2005, $6.80 60%
Buy Electronics Retail 9/19/2005, $25.00 Open
Buy Brewing 9/16/2005, $45.00 Open
Buy PXRE Group (PXT) 9/14/2005, $19.00 9/22/2005, $16.91 11%
Buy Ariba ARBA 9/14/2005, $6.00 2/21/2006, $9.60 60%
Buy XLB June $30 puts (XLBRD) 4/5/2005, $1.10 4/14/2005, $1.40 27%
Buy Sun (SUNW) 2/17/2005, $4.20 3/9/2005, $4.41 5%
Buy ProFunds Ultra Semicon (SMPIX) 11/11/2004, $18.09 8/12/2005, $20.33 12%
Buy UTStarcom (UTSI) 11/8/2004, $16.59 2/11/2005, $15.10 9%
Buy Maxtor (MXO) 10/21/2004, $3.25 3/29/2005, $5.35 65%
Short Time Warner (TWX) 9/20/2004, $16.85 10/18/2004, $16.33 3%
Buy Sun (SUNW) 8/9/2004, $3.60 8/22/2004, $3.70 3%
Buy Sun (SUNW) 10/8/2003, $3.40 2/15/2004, $5.64 66%
Buy Media 3/11/2003, $15.00 Open
Buy Level Three (LVLT) 3/10/2003, $4.50 7/11/2003, $6.00 33%
Buy Pharmaceutical 2/25/2003, $28
9/23/2005, $25
Open
Buy Fleming (FLM) 2/25/2003, $1.85 3/18/2003, $1.40 24%
Buy Sun (SUNW) 11/12/2002, $2.90 7/11/2003, $5.00 72%
Buy Intel (INTC) 9/21/2002, $14.90 7/14/2003, $24.48 64%
Buy Software 8/2/2002, $22.50 Open
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