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The Best- And Worst-Performing Stocks Since The 2009 Market Bottom

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Includes: BAPR, BAUG, BIBL, BJUL, BJUN, BOCT, CHGX, CRF, DDM, DIA, DMRL, DOG, DUSA, DXD, EDOW, EEH, EPS, EQL, EQWL, ESGL, FEX, FWDD, GSEW, HUSV, IVV, IWL, IWM, JHML, JKD, OMFS, OTPIX, PAPR, PAUG, PJAN, PJUN, PMOM, PPLC, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RVRS, RWL, RWM, RWSL, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SFLA, SFY, SH, SMLL, SPDN, SPLX, SPSM, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SSPY, SYE, TNA, TQQQ, TRND, TWM, TZA, UAUG, UDOW, UDPIX, UJAN, UOCT, UPRO, URTY, USA, USMC, UWM, VFINX, VOO, VTWO, VV, ZF
by: Erik Conley
Summary

Presenting 4 lists of winning and losing stocks.

I advise clients to diversify, but not to over-diversify.

You can tilt your portfolio in many different ways, but you can't eliminate market risk.

Thanksgiving leftovers have been eaten. Black Friday shopping is done. With time on our hands, why not reflect on past winners and losers in The Investment Game?

Today, I present 4 lists of winning and losing stocks:

  1. Mega-winners that have at least doubled in price since the start of 2019.
  2. "Ten-Baggers" that have gained at least 6,000% since the market bottom in 2009.
  3. "Widow-makers" that have lost at least 80% of their value since the market bottom in 2009.
  4. And just for fun, the 10 stocks that have gained the most since Trump became President.

Table 1. Stocks that have been on fire in 2019, at least doubling in price.

If you were lucky enough, or smart enough, to own even one of these high-octane names this year, you probably did well overall. Let's break down this list.

Of the 21 names, 9 are tech stocks, by far the largest representation.

3 are retailers, which supports the "healthy consumer" narrative.

The rest are single representatives from these industries:

  • Basic Materials
  • Business Services
  • Construction
  • Consumer Staples
  • Industrial Products
  • Medical
  • Oils - Energy

Wait a second. How did an energy company make the list? You'll have to do some research into World Fuel Services (INT) to find the answer.

Table 2. Ten-Baggers since the 2009 bottom...

This list is stacked with companies in Finance. 4 of the 10, in fact. The rest are single representatives of their industries.

  • Business Services
  • Computer and Technology
  • Construction
  • Consumer Discretionary
  • Oils - Energy
  • Retail - Wholesale

In case you're wondering how a company like Patrick Industries (PATK) or Fidelity Southern Corporation (LION) can possibly gain 25,000% over 10 years, the answer is earnings growth, great management, and smart deployment of capital.

Table 3. Stocks that have benefited the most during the Trump administration.

These 10 stocks have thrived since the election. And it's a more balanced list than the others. 3 tech stocks, 2 finance, 2 medical, 2 energy, and 1 utility. How did Ensco PLC (VAL) manage to gain 3,111%? Do some research and find out.

Table 4. Stocks that have been hammered mercilessly and may not survive.

Finally, we turn to the sad sacks in the market. These unfortunate companies had already taken a beating during the 2008 market meltdown, and they have not yet found a way back to health.

The list is lopsided, having 6 of the 10 stocks in the energy industry. The other 4 are single representatives of these industries:

  • Computer and Technology
  • Consumer Staples
  • Medical
  • Utilities

Final thoughts

This article is a cautionary tale for stock pickers. You can make a killing, as the tables show, but you had better have an edge over the competition (professional investors) if you want to go that route.

I advise clients to diversify, but not to over-diversify. You can tilt your portfolio in many different ways, but you can't eliminate market risk. Stock pickers (like me) might consider a portfolio that has 60% in diversified vehicles like index ETFs and 40% in individual stocks. The goal is to not blow yourself up while looking for the next Ten-Bagger.

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.