Team,
Apart from COVID-19 Folio, I also put together a 2020 “Do-Nothing” folio at the beginning of every year. My first post on the model folio can be found here.
Goal: Beat the market by basically doing nothing. You heard me. Pick the stocks, walk away and come back at the end of the year.
Model folio assumptions:
- The folio is static in nature (assumes no dollar cost averaging, no trade management, buy and hold 1 single lot)
- I buy between 15-20 positions and hold them for the year.
- Starting date is 1/1 (2019 was a bit late – I started on 2/11))
- Assume there WILL BE DOWN MONTHS.
Below was the 2020 pfolio in Jan 1:
Full transparency – one of the stocks in the folio crashed and burned earlier in the year(Luckin Coffee, ticker LK). We replaced this stock before there was any further damage to the folio with AUDC on March 9 and give ourselves a penalty of -20%.
Below is the latest folio as of October 2. Assume the actual folio performance is 103% after accounting for the 20% penalty.
Still, not a bad performance even with COVID-19, climate, civil unrest and election uncertainty!
This folio got trumped by my COVID-19 comeback folio after we saw the massive drop in March. That said, I still like the folio overall and plan to provide an update on the folio at the end of year.
Cheers,
Les