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Core Value Portfolio Update: Up 21.5% In H1 2017

Jul. 10, 2017 11:56 AM ETCALL, PHIIK2 Comments
General Expert profile picture
General Expert


  • The Core Value Portfolio reached new highs towards the end of the second quarter.
  • I share with you some of things that I believe are necessary for achieving long-term outperformance.
  • Learning to suffer stretches of underperformance.
  • Don't be afraid to miss out on hot investments.
  • Accept that things can go wrong.

The Core Value Portfolio is a value-based portfolio that aims to achieve 20% CAGR over the long-term

Performance Since Inception

Source: Author’s calculations

After a lackluster 2016 and a poor start to the year, the Core Value Portfolio reached new highs towards the end of Q2 2017, firmly in line with its long-term goal of achieving 20% CAGR. Although there is absolutely no guarantee that this level of performance will continue, I believe that I am laying the groundwork to achieve this goal by buying only the best of the best.

To those of you that are not familiar with the Core Value Portfolio, I encourage you to check out the introduction to the portfolio. While it won’t aid you in determining the future performance of the Core Value Portfolio, it is a good resource to understand the investment process behind the portfolio and why I believe that the process will ultimately lead to superior performance over the long term.

I will not be discussing the portfolio’s specific holdings today as they are reserved for subscribers, but I will discuss some key attributes that I believe will allow me to outperform the market over the long-term.

You Must Learn To Suffer

Whatever sentiment created an opportunity could continue to persist and possibly get worse. If one were to invest in a broad index (SPY)(QQQ)(DIA), this would be less of a concern as irrational emotions at both ends of the spectrum tend to balance each other out. When you are running a concentrated portfolio however, you don’t get such luxury as there may not be an offset, meaning that its volatility is usually much greater than that of the index.

What you get in return for this inconvenience is greater returns, provided that what you think are opportunities are indeed opportunities. A stock

This article was written by

General Expert profile picture
Creator of the Core Value Portfolio. The goal is simple but not easy. By shooting for an extraordinary goal of compounding capital at 20% annually over the long-term, the portfolio embraces concentration and goes through dramatic swings. Those without conviction will sell when positions don't go their way, but the Core Value Portfolio always takes advantage when the market is wrong.The Core Value Portfolio has significantly outperformed the market since its inception, but it also experienced extended periods of underperformance. This is a sacrifice that I'm willing to make for the sake of achieving superior returns over the long-term."No one can know everything. But still try."Contact: generalexpert86 [g]mail

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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