Saturday, June 18, 2005
A solid week. My portfolio gained $12,328 to $427,501 (3.0 percent), in line with the Russell 2000 (2.9 percent), and better than the S&P 500 (1.6 percent), and the NASDAQ (1.3 percent). Despite this nice gain, I am wary about the future. I ran my favorite stockscreen this morning (looking for stocks with low P/B, P/E and P/S values) but found nothing. I keep seeing the same garbage names over and over again. A few years ago, you couldn't sneeze without seeing a great value stock. Those days are over. Value investors are now running on fumes. Sure, there are plenty of cheap stocks out there. But most of them deserve to be cheap, if not worse. While I continue to think that the stocks in my portfolio will continue to outperform the market, I don't think the margin of outperformance will be anywhere close to as large as I have achieved in the past.