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Van Meerten New High Portfolio Beat Warren Buffett's Berkshire Hathaway

Today is the 10 year anniversary of the Van Meerten New High portfolio on Marketocracy and I'm happy to report that the portfolio's average annual return of 9.90% beats Warren Buffett's Berkshire Hathaway (NYSE:BRK.B) annual return of 9.35% by 5.88%.

During the same 10 year period the S&P 500 Stock Index returned only 5.95% so the portfolio beat the market by 66.39%.

Although Marketocracy has the fund classified as a Quant fund there are some important differences. The objectives of the fund in order of priority is:

  1. Capital preservation
  2. Select stocks trading above their moving averages
  3. Initial purchases should have hit new highs in at least 50% of the last month's trading sessions
  4. A sell discipline to minimize downside losses
  5. Unlike most Quant funds it does not stay fully invested - If market conditions are uncertain and no stocks meet the purchase criteria no additions are made until conditions improve

I am trying to manage a portfolio designed for the person that has already accumulated significant assets or has a large self-directed IRA and feels protecting their nest egg is more important than trying to squeeze a few more percentage points of return in the short run.

The portfolio should not be volatile and over the past 10 years the Beta has been .79 more than 20% less than the market.