The R.I.P. Portfolio's Q4 2020 Update

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WG Investment Research


  • This real-money portfolio was first introduced to the Seeking Alpha community in December 2015.
  • The portfolio outperformed its benchmark in Q4 2020 and is now outperforming the S&P 500's performance since late-2015.
  • The portfolio was overweight Financials and Industrials heading into 2020 and that turned out to be a terrible decision given the fallout from COVID-19.
  • However, the portfolio has recovered from the March 2020 lows. And looking ahead, I believe that this portfolio is well-positioned for the next few years.

The Retire In Peace portfolio, or R.I.P. portfolio, was first introduced to the Seeking Alpha community in December 2015, and I have published quarterly articles that captured the activity and performance of the portfolio since that point in time. The companies that I write about on SA are largely the holdings of the R.I.P. portfolio, so the main purpose for the quarterly articles is to allow for my SA followers to track the performance of the stocks that I write about on this platform.

See the article linked above for additional details on what I would like to accomplish with these quarterly updates. Additionally, the goals for the portfolio and my long-term strategy are identified in the sections below.

Quarterly Market Update

What a quarter (and year)! The broader market finished Q4 2020 near all-time highs despite weak economic indicators, uncertainty related to the U.S. presidential election, and the headwinds caused by the global pandemic.

Source: Fidelity, 2020 Stock Market Report

The March 2020 dip feels like it was years ago at this point as pundits have been willing to look past the economic uncertainty related to the COVID-related headwinds. Instead, investors have focused on a potential vaccine-driven recovery and the near term benefits of another round of fiscal stimulus. The result? Extremely strong market performance since the March/April 2020 time frame.

And from a sector perspective, it has been pretty much the same old story - the winners kept winning and the sectors that were lagging the broader market continued to underperform.

Source: Fidelity, 2020 Stock Market Report

As shown, Energy, Financials and Industrials continued to underperform the broader market. Over the last few years, I have been heavily invested in Technology (positive), Industrials (negative), Financials (negative, outside of late-2019), Materials (negative) and Healthcare (positive) so the portfolio performance has been subpar for an extended period of time.

This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long BAC, TSLA, NIO, PFE, C, TDOC, AMGN, APPL, BRK.B, XIN, JNJ, DIS, Z, INTC, CSCO, GM, TRX, GE, WNC. 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.

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