As we complete our first rolling twelve month period, today, I want to give a brief summary of our performance.
Since inception (August 2012), our portfolio is up 35.7% versus 15.5% in the S&P 500. This includes a long period where we held a significant amount of cash, as we were building the portfolio. For every $20,000 invested our picks have produced gains of $7,131.
We became fully invested in June. And that’s when we have truly been able to show the power of our process.
Since June 1, the portfolio is up 20.1% versus 4.5% in the S&P 500.
What about today? Today, stocks, yields and the dollar has a technical sell-off. And predictably, the media and Wall Street salesmen are licking their chops — going to their wheel-house of scary market conjecture.
Our Billionaire’s Portfolio lost 1/8 of 1%. Meanwhile, the S&P lost over 1.5%.
This is what real investing is about. It’s not about picking up tips and clues from watching heavily made-up egotists on CNBC all day. It’s about investing in stocks where there is a clear catalyst at work and pent-up value. And we only do so when we have a very rich, powerful partner on our side, that owns enough stock and has enough influence to control his own destiny. When he wins. We win.
This is how you make money consistently in the stock market. This is what “absolute return” investing is all about. It doesn’t matter what the stock market is doing. When value in a company is unlocked, the stock goes up! This week was a very good example. When stocks were down for a second consecutive day, one of the picks in our portfolio, jumped over 30%. And today, stocks break-down, our portfolio holds firm.
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President of The Billionaires Portfolio