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Scott Wachsler
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I manage Wax Ink.net, a baseline equity research company comprised of individual investors not licensed or registered with any government agency. I have been all cap value investor and independent equity researcher for the past 30 years, and believe that patience is the key to successful... More
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Wax Ink
  • Perfornance - Week Ending 05/10/2013 2 comments
    May 11, 2013 12:12 PM | about stocks: XOM

    I need to set the record straight at the outset. I have never, and I will never, tell someone to buy or sell equity positions based on what my GUESS about the macro-economy happens to be.

    I will say this however. Anyone, and I mean anyone, regardless of who they are, that makes portfolio adjustments based solely on what their GUESS about the economy happens to be, is a fool.

    I happened to catch a glimpse of Fox Business the other day and I was amazed at just stupid the panel really was.

    One guy was some portfolio manager and and another guy was an investment advisor, and I think there was some consumer person also.

    What was amazing, at least to me, was just how utterly clueless they all were. And to think, people actually give these folks their money thinking it is in safe hands!

    I'm not saying that all these folks were clueless about how to invest your money, what I'm saying is these folks were utterly clueless when it came to maximizing your returns.

    For instance the investment manager kept saying that the economic indicators were this and that and it was all because the government is pumping so much money into the economy and folks should invest in this or that as a hedge against what the government is doing.

    How simplistically ignorant.

    The portfolio manager guy in essence said the same thing, but highlighted sector rotation. He advocated moving investment money as economic conditions in one sector deteriorated, to another sector where economic conditions are improving.

    He never actually said what he would do should economic conditions be deteriorating in all sectors.

    Certainly wealth building, as does all investing, is helped by just dumb luck. But with the luck factor removed, it comes down to buying great company's at favorable prices and holding them for very long periods of time.

    I am always reminded that 100 share investment in Exxon- Mobil Corporation (NYSE: XOM) back in January of 1970, would be a 3200 share investment today.

    In addition, with a recent close of $90, that $5700 investment back in 1970 would be worth a little over $288,000 today, not counting the 173 or so quarterly dividends that have been paid.

    The point is, you can listen to wizards and invest just they way they do and over time have a pretty fair return.

    Or you can forget those retreads, spend a little time educating yourself and take charge of your own wealth destiny. The choice as always, belongs to you.

    Hi. My name is Wax, and I am an individual investor, a working class investor, just trying to do the best I can in a world that was never intended for investors like me.

    Throughout the course of the week, I post a Daily Alert, which is my review of an individual equity.

    The other thing I do, is let the world watch as I manage the The Wax Ink Portfolio.

    And I do these things for two reasons.

    The first reason is because I hope you will donate a few bux and encourage your friends to do the same. Hopefully with your assistance I can stop the monthly cash flow drain required to pay the costs of a "free" website.

    The second reason is because I hope to help other working class investors avoid the investing pitfalls that found me when I was starting on my investing journey.

    Markets
    The Wax Ink Portfolio closed up 1.9% for the week. By comparison the Dow was up 1.0%, the Nasdaq was up 1.7%, the S&P 500 was up 1.2%, and the Russell 2000 was up 2.2%.

    The Volatility Index, commonly known as the VIX, was again the big loser for the week, closing at 12.59, down 1.9%. The VIX is now down 17.4% for the year.

    Year to date, the Wax Ink portfolio is up 7.7% while the Dow is up 15.4%, the Nasdaq is up 13.8%, the S&P 500 is up 14.5% and the Russell 2000 is up 14.8%.

    Breakdown
    The portfolio breakdown remains the same, with 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

    Research
    Again this week, I paid little attention to the research list last week, there just wasn't any time to devote to it.

    Holdings
    This week's moving on up stocks were trucking company Arkansas Best Corporation (Nasdaq: ABFS), up 58%, iron ore company Cliff's Natural Resources, Inc. (NYSE: CLF), up 18%, and after market car parts maker Dorman Products, Inc., (Nasdaq: DORM), up 6%.

    This week's turd in the bunch bowl stocks were aerospace engineering and manufacturing company Ducommun, Inc. (NYSE: DCO), down 24%, refiner HollyFrontier Corporation (NYSE: HFC), down 5%, and communications equipment maker Tellabs, Inc. (Nasdaq: TLAB), down 2%.

    Not Performing
    The top non-performers remain communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 62% since being added, garage door/telephone headset maker Griffon Corporation (NYSE: GFF), down 40% since being added, government engineering contractorSAIC, Inc. (NYSE: SAI), down 24% since being added, and industrial construction company Layne Christensen Company (Nasdaq: LAYN), down 18% since being added.

    Wax

    Wax Ink is a baseline equity research company comprised of individual investors NOT licensed or registered with ANY government agency. Always obtain the advice of a registered investment professional BEFORE believing any information contained herein.

    Copyright © 2013 Wax Ink

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

    Themes: Portfolio Management Stocks: XOM
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Comments (2)
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  • Options2Wealth
    , contributor
    Comments (96) | Send Message
     
    I quit watching the shrills on CNBC many, many years ago and I believe that that decision turned out to be extremely beneficial for the health of my portfolio...LOL!

     

    kp
    11 May 2013, 12:49 PM Reply Like
  • Scott Wachsler
    , contributor
    Comments (162) | Send Message
     
    Author’s reply » I agree with you O2W. But they are good for fodder from time to time.

     

    Wax
    13 May 2013, 04:59 AM Reply Like
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