Its that time again for The Five Greatest Stocks for The Next Five Years update. I created this portfolio back in November of 2011 thinking that these great companies would continue to grow their earnings, revenues, and brand recognition. For the most part this has continued to be true, but I will admit that some of the companies such as Apple (AAPL) and Amazon (AMZN) have seen their share of problems, Apple with slowing revenue growth and Amazon with little or no earnings. Even with these problems, there is no denying that brand strength continues to be strong with all five companies. Let's see how the portfolio has performed vs. the S&P 500 (SPY). The period that will be used is from November 1, 2011 to April 1, 2014 and the total returns include stock price appreciation and dividends.
Amazon (AMZN), $336.37: Total Return of 57.5%.
Apple (AAPL), $536.74: Total Return of 38%.
MasterCard (MA), $74.70: Total Return of 116.7%.
Under Armour (UA), $114.64: Total Return of 171.6%.
The Total Return of The Five Greats Portfolio was 94.4%.
The Total Return of The S&P 500 (SPY) was 57.1%.
Stats and chart courtesy of low-risk-investing.
Despite the lackluster performance of Apple, the Five Greats continue to beat the market as represented by the S&P 500. I continue to think that this portfolio will outperform the S&P going forward.
Special note: I have been questioned many times from my followers and readers on how exactly can a small investor invest in these five stocks when the prices of the shares are so high. The simple solution is to use the investment services of Motif Investing, where a small investor can create their own portfolio of up to 30 stocks with a minimum investment of $250.
Disclaimer: All articles are written as an opinion of the writer or writers. The contributors on this website are not professional investment advisors. These articles are written to share investing ideas that may be of interest to the reader. Always seek the advice of a professional investment advisor before investing.
Disclosure: I am long MA.