If you are a regular reader you know that comedian / faux financial expert Auggie Smith – www.auggiesmith.com – challenged two stock picking experts to a 2013 stock picking dual. The experts, with years of financial experience and training, used sophisticated financial models to buld their ideal portfolios. Auggie chose a more NRA-friendly method for picking his stocks. He fired at the financial pages with a rifle.
As we draw close to the end of the first quarter (and one of the hottest in recent memory), here is how they stand. On a $10,000 initial investment – the rankings are:
- Barrons – ten stocks for 2013 – have moved into first place with a portfolio value of $10,810 – an over 8% increase in the first three months of the year. Seven of their ten picks are up – with increases of between 8 and 40%. Their main laggard is Apple (which our resident financial expert. Ray Link, still rates a buy).
- Auggie slips from first to second place – with a still respectable value of $10,560. His portfolio was really hurt by Ambow Education – which has lost 2/3rds of its value. When you choose your stocks with a bullet you don’t learn a lot about them, but I did a bit of research, and Ambow bills itself “a leader in personalized education and training” in China. There seem to be some financial irregularaties, as the Chairman of the audit committee resigned and the stock plummetted. Still, five of his ten picks are up – with increases of ranging from 2% to as high as 80%. If Ambow had not nosedived he would be a real contender.
- The safe and diversified Vanguard Growth Fund is at $10,488.
It has been a great market year to date – but it is early in the competition. Stay tuned!
FYI – download Auggie’s new podcast, “Motivationally Speaking” in the iTunes store.