For Profitable Investing, Patience Is A Virtue

Sitting Tight Paid Off

 

It would have been easy to change course in late January or early February when the market trend was clearly down and bearishness was pervasive.

Many pundits were advising selling stocks and holding cash as the only way to ride out what they expected  to be a major sell-off. Here at Market Shadows we not only sat tight with our holdings, but added a few new positions to both our Virtual Value Portfolio and our Virtual Put Writing account.

Our Tuesday, Feb. 25,  purchase of Tim Horton’s (THI) was especially well-timed. The stock gained 3.6% through the end of the week. That was in addition to going ex-dividend for 29-cents a share on Thursday, Feb. 27.

An original stake of $100,000 has grown to more than $140,000 since the portfolio's Oct. 26, 2012, inception date. Our total return is now + 40.5%, well ahead of the SPY ETF for the same time period.

 

Our cash reserve is now at 6.1% of total equity. 

Two months into 2014 the DJIA is still slightly negative. The DJIA  is down -1.54%. After Friday's gain the S&P 500 is + 0.6% since year end. Market Shadows value mix  is proudly positive at + 0.66%. That feels pretty good after seeing the broad market off by about 6% just a few weeks earlier.

Check out all our transactions, including already completed trades, by clicking here .

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