Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Secular Trends Update 12/12 - Welcome New Readers

Posted on | December 13, 2008 Time: 2:23 am |

Hello and welcome to all the new readers who subscribed to the feed this week. As a note to all, I’ve made some changes to the layout of the Portfolio Page, which had about as much performance value as the Flintstones car. I have to self-noodle a lot of the development work here, so please excuse the Spartan site design while I continue to get my 2.0 sea legs…

Now the portfolio page links to my coverage of all 22 holdings in the model, along with some sector performance nuggets through Friday’s close. In the first quarter since inception, the Secular Trends Portfolio has picked up about 10 points on the S&P 500, but in this market I feel no comfortable margin has yet been built.

Also on the housekeeping front, let me take a moment to remind readers about the purpose and scope of the secular trends model (from my November 6th update):

“First and foremost, the model portfolio is 100% invested in equities not because I recommend that as the optimal asset allocation at present. I absolutely do not advocate for any investors to hold more than 40% to 50% equities. The only exception is for those of you under 40 or with time horizons of 10 years or more.

It’s up to you to determine what equity allocation is best suited for you. If you’re in any way unsure, mutual funds, index funds, or direct professional management is the best route to take.”

So far I’ve kept turnover ultra-low (under 5%), but I may be conducting some trades next week to re-balance the individual weightings. I’m looking to consolidate the healthcare names, possibly sell out of Pfizer, and add an alternative energy name, preferably of the “picks ‘n shovels” variety rather than a end solution provider.

In the meantime, I appreciate all your comments, questions, encouragement, and criticism. If you have a company that you’d like analyzed from a secular trends perspective, feel free to drop me a line. This weekend I’ll be reviewing Cree Inc (CREE) and St. Jude Medical (STJ) per reader requests.

As always, our research plays no favorites and strokes no egos; if I find a stock with a better thesis and a clearer line of sight towards acceptance by the market, I will find a place for it.

Cheers, and have a great weekend.

Ryan Barnes

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