Thursday, June 30, 2005


Weak end to a strong month

Despite two weak days in a row, my portfolio managed to increase $21,804 for the month of June (5.3 percent), making this the best one month performance since December. I've now been able to outperform the S&P 500 eleven months in a row. While I'm generally pleased about my performance so far this year, I'm disappointed that I haven't been able to diversify my portfolio away from its heavy reliance on value stocks. I suppose the prime reason for that is because I am a value investor at heart, and I feel like I'm in an alien world when I contemplate buying anything other than a value stock. However, as I'm pointed out before, reliance on one particular style of investing leaves one exposed to more risk than is optimal, especially in today's market environment where it is very hard to find good stocks at reasonable prices. If you don't believe me, take a look at figure 4 in this fascinating whitepaper by John Campbell.

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