3 Stocks Owned By A Fool

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 |  Includes: BPI, BRK.A, BRK.B, DVY, EMB, HYG, ICF, IDV, ROIC, TIP, VIG, VWO
by: MyPlanIQ

Alex Pape of the Motley Fool offers three stocks in his personal brokerage account. He is not alone with his recommendations because all three stocks are owned and recommended by Motley Fool Million Dollar Portfolio, the Fool's real-money investing service. His selections:

  • Bridgepoint Education (NYSE:BPI) is an online, for-profit educator
  • Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) needs no introduction
  • Retail Opportunity Investments (NASDAQ:ROIC) buys up and turns around distressed commercial West Coast real estate

This gives you one stock in a potentially growing market (education) as existing providers are straining at the seams and people look for new solutions. There is a solid investment with Berkshire Hathaway and an interesting real estate place. Three stocks is a very small selection but worth comparing with our ETF benchmark of a balanced portfolio of dividend producing ETFs.

Asset Fund in this portfolio
REAL ESTATE ICF (iShares Cohen & Steers Realty Majors)
CASH CASH
FIXED INCOME TIP (iShares Barclays TIPS Bond)
Emerging Market VWO (Vanguard Emerging Markets Stock ETF)
US EQUITY DVY (iShares Dow Jones Select Dividend Index)
US EQUITY VIG (Vanguard Dividend Appreciation ETF)
INTERNATIONAL EQUITY IDV (iShares Dow Jones Intl Select Div Idx)
High Yield Bond HYG (iShares iBoxx $ High Yield Corporate Bd)
INTERNATIONAL BONDS EMB (iShares JPMorgan USD Emerg Markets Bond)
Click to enlarge

Portfolio Performance Comparison

Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Retirement Income ETFs Tactical Asset Allocation Moderate -4% -39% 9% 69% 8% 53%
Retirement Income ETFs Strategic Asset Allocation Moderate -0% -3% 12% 63% 3% 11%
3 Stocks Owned By a Fool 16% 62%
Click to enlarge

The first thing to note is that this is only three stocks and so there will be a good deal of volatility and this would need to be augmented with other equities to make a stable portfolio. The second thing to note is that the history is not long enough to take a long term view.

Three Month Chart(Click to enlarge)

One Year Chart(Click to enlarge)

Three Year Chart(Click to enlarge)

Five Year Chart(Click to enlarge)

The more detailed analysis and graphs give you a visual view of the volatility.

We can see the volatility because there are only three choices but the performance is intriguing and worth tracking along with more examples of equities that have the same properties.

This selection of equities had a very strong spike around 2008 and perhaps they will spike again. We will track this selection but this isn't something I would want to own.

Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.