Where are they now: Dec 2004 Stock Picks Report Card
I made a few moves in my IRA late last year. Like many value oriented investors I saw little that I liked, but like a dope I went ahead and made a couple of buys.
I got into Pfizer (PFE) when it was getting hammered over Vioxx and also into a small Bermuda based re-insurer, Endurance Specialty Holdings (ENH). Both stocks had the virtues of being cheap and paying a nice dividend. (I don't consider Pfizer a particularly inspired pick - but I think the Vioxx liabality was overblown - Pfizer won't be set upon by a pack of rabid mesothelioma attorneys). Speaking of asbestos - ENH as a relatively new insurer does not have the legacy of asbestos libability either, but it's a newish company and seen as 'untested'.
Some people like to buy pre-owned cars. I like to buy pre-tanked stocks (e.g. if a stock is going to tank the key to a quality investing experience is to buy it after it has tanked rather than before).
Based on my buy price, including dividends, and factoring in the cost of a round trip commission I am up about 8% on these two stocks. Nothing to write home about I thought till I noticed that the Vanguard Index 500 (a good proxy for the S&P 500) is down over 5% year to date.
I'm still actively debating with myself whether I should be picking stocks at all or if, as a small investor, it makes sense to go with a blend of funds. The jury is still out ...
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Some great free advice is available from money managers Grantham, Mayer, Van Otterloo (GMO). If you register (free!) at their website, you can view some expert (if sparse) commentary and also 7 year asset class forecasts (updated quarterly). Read
