My fellow readers, you are aware of my stock picks, most do well, some do great and some do not do so well. So I want to give you a tip on how to invest. If a stock is in your portfolio for over 1 month and has not generated a return, or generates 7% or more in losses, drop that stock from your portfolio. This will limit your down side from losses. On the upside, hold onto stocks that are rising and I have given recommends on stocks that risen 57% like CPSS, ones that have risen nearly 30% like infinity pharmaceuticals, interoil corporation 33%, Green mountain coffee roasters 17%, Jefferies Group 17%, Strum Ruger and Company 26%, Citigroup Inc 10%, JP Morgan 13%, Goldman Sachs 20% plus a small dividend. Most of the stocks I've picked have been winners, but if you find one losing 7% or more and drop it from your portfolio, you should have seen at least 15-20% return in the first quarter of this year if you followed my stock picks.
Going back to my article best stocks of 2013
I had 3 top picks
Average Return = 11.76%
Lets compare that to the market
S&P 500: 7.97%
Average Return = 7.84%
My top picks outperform the market significantly, and I expect for the chasm to increase. ASR has a dividend coming in May, SWHC still has room to grow and DDD will see growth. In fact DDD was delivering a 30% return by January 25, 2013. However the stock price fell significantly in February and then there was a stock split. The earnings came in slightly below analyst estimates at about $101 million instead of $103 million. Although the stock price fell because DDD didn't meet the expectations of analyst its performance and fundamentals are still strong, it is a fast growing company in one of the fastest growing industries in America. It may have been temporarily overvalued, but it wasn't by much. I recommend holding this stock until its next earnings release.