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Time to Rebalance GuruFocus Model Portfolios

December 31, 2012 | About:
GuruFocus

GuruFocus

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GuruFocus model portfolios will be rebalanced after today’s market close. If you want to invest in GuruFocus value strategies, now is the time. The Buffett-Munger model portfolio, in which GuruFocus founder Dr. Charlie Tian invests his own money, is underperforming the S&P 500 by about 1% this year. This is after three years’ outperformance since 2009. The portfolio has a total gain of about 81% for the last four years, outperforming the S&P 500 by 24.7% cumulatively.

This year’s underperformance was almost all caused by one single stock, ITT Educational Services (ESI). The market environment for the for-profit college has changed dramatically. It can’t make money as easily as it used to. The company’s business predictability dropped. This is the largest risk in investing in predictable companies.

The remaining 24 stocks did very well, as you can see from the list below:

Symbol Company # of Shares Bought on Share Cost Current Price Change Value ($)
CASH Cash 161.34 12/31/1969 1 1 0 161.34
ANSS Ansys, Inc. 115 01/01/2011 $52.07 67.08 +28.83% 7,714
ATRI Atrion Corporation 25 01/02/2012 $240.23 190.4 -20.74% 4,760
BRLI Bio-Reference Labs, Inc. 371 01/02/2012 $16.27 28.61 +75.85% 10,614
CHRW CH Robinson Worldwide, Inc. 72 01/01/2009 $55.03 62.54 +13.65% 4,503
CPRT Copart, Inc. 282 01/02/2010 $18.31 29.03 +58.55% 8,186
ESI ITT Educational Services, Inc. 94 01/01/2011 $63.69 16.82 -73.59% 1,581
ESRX Express Scripts 135 01/02/2012 $44.69 52.87 +18.3% 7,137
FCFS First Cash Financial Services, Inc. 194 01/01/2011 $30.99 48.5 +56.5% 9,409
FDS FactSet Research Systems, Inc. 78 01/02/2010 $65.87 88.25 +33.98% 6,884
GD General Dynamics 91 01/02/2012 $66.41 68.01 +2.41% 6,189
HRL Hormel Foods Corporation 268 01/02/2010 $19.225 30.89 +60.68% 8,279
IDXX Idexx Laboratories 78 01/02/2012 $76.96 92 +19.54% 7,176
JJSF J&J Snack Foods Corp. 124 01/01/2011 $48.24 62.65 +29.87% 7,769
JW.A John Wiley & Sons, Inc. 136 01/02/2012 $44.4 38.5624 -13.15% 5,244
LLTC Linear Technology 201 01/02/2012 $30.03 33.74 +12.35% 6,782
LMT Lockheed Martin Corporation 74 01/02/2012 $80.9 90.66 +12.06% 6,709
NEOG Neogen Corporation 197 01/02/2012 $30.64 44.755 +46.07% 8,817
NRCI National Research Corporation 155 01/02/2012 $38.81 53.01 +36.59% 8,217
RGLD Royal Gold, Inc. 89 01/02/2012 $67.43 80.07 +18.75% 7,126
SIAL Sigma-Aldrich Corporation 90 01/01/2011 $66.56 72.85 +9.45% 6,557
TEF Telefonica SA 360.2313 01/02/2012 $16.7494884537 13.39 -20.06% 4,823
WAG Walgreen Company 182 01/02/2012 $33.06 36.8 +11.31% 6,698
WAT Waters Corporation 77 01/01/2011 $77.71 86.41 +11.2% 6,654
WMT Wal-Mart Stores Inc 111 01/01/2011 $53.93 67.62 +25.38% 7,506
WRLD World Acceptance Corporation 202 01/01/2009 $19.76 73.96 +274.29% 14,940
Total Market Value: $180,983; Cost: $100,000; Change: 80.98%
The rebalance will be done after the market close today. Usually we have about a 50% turnover rate for the model portfolios, which means about 50% of the stocks will stay in the portfolio.

This is the annual performance number of the Buffett-Munger portfolio:

Year S&P 500 Buffett-Munger Screener top 25
2009 23.5% 29.1%
2010 12.8% 19.1%
2011 -0% 6%
2012 12.1% 11%
Since Inception 80.9%
Outperforming the S&P 24.7%
If you want to invest along with the Buffett-Munger strategy, now is the time. GuruFocus Premium Membership is required to gain full access to this portfolio. If you are not a Premium Member, we invite you for a 7-Day Free Trial.


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