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Title: Stock Ratio of SuperStockPicker Portfolio s Post by: PatrickBlais on January 08, 2011, 12:13:43 PM Hi all,
I've been watching closely this site since new year. looks interesting but I have 1 question. If we don't have the ratio of each stock for the portfolio, how can we make the same returns? For instance, if we are advised to buy one stock, even if the stock makes 100% it depends on the percentage this stock weighs in the portfolio vs SuperStockPicker... Is it possible to know the percentage each stock holds in the portfolio? Title: Re: Stock Ratio of SuperStockPicker Portfolio s Post by: DCA on January 08, 2011, 01:03:08 PM Hello PatrickBlais,
In answer to your first question: you cannot. How SSP calculates the ratios is covered elsewhere but the basic idea is that the amount of money invested in a stock is weighted by the performance of the stock since it was added to the portfolio. I believe SSP only rebalances when there is an actual buy or sell order (not every week). This can result in multiple trades of small number of shares which would eat into real returns. This and the fact that SSP uses the close price for the portfolio makes achieving identical returns to SSP impossible. My goal is to do better. Last 3 months I was at 65%, last 6 months 50% and last year 45%. Compare that to the V4 portfolio and you will see that is quite close. Treat each SSP pick as a suggestion. Decide for yourself whether you consider this a good pick or not, how much you should invest, how to rebalance.... D Title: Re: Stock Ratio of SuperStockPicker Portfolio s Post by: PatrickBlais on January 08, 2011, 04:58:35 PM Thanks Karma.
I understand the idea behind this. Thanks. |