As GuruFocus enters the 12th year of operation, our guru strategies model portfolios finished its 10 year. During the last 10 years, Guru Broadest Held Portfolio outperformed the market in eight years! Overall the portfolio gained 110% while the S&P500 gained 59%.
As suggested by its name, Guru Broadest Held Portfolio consists of the most broadly held 25 stocks in a selected group of Gurus' holdings. The rank is based on the number of the gurus who hold the stock. All other things being equal, the stocks that the gurus hold in higher concentrations (percentage of portfolio) are ranked higher. The portfolio is updated every 12 months. The current list of stocks that meet the criteria can be found here.
These are the detailed annual performance of the portfolio is below:
(All Numbers do not include dividends, updated daily)
| Year | S&P 500 | Broadest Held Portfolio | Outperformance |
| 2006 | 13.62 | 15.18% | 1.56% |
| 2007 | 4.24 | -5.47% | -9.71% |
| 2008 | -38.91 | -29.98% | 8.93% |
| 2009 | 24.71 | 30.7% | 5.99% |
| 2010 | 11.65 | 14.63% | 2.98% |
| 2011 | -0 | 0.54% | 0.54% |
| 2012 | 11.52 | 16.99% | 5.47% |
| 2013 | 31.8 | 30.85% | -0.95% |
| 2014 | 11.39 | 12.3% | 0.91% |
| 2015 | -0.73 | 6.07% | 6.8% |
| Cumulative | 55.67% | 105.04% | 49.37% |
We can see that over the past 10 years, the worst year for the portfolio was 2007, when it underperformed by almost 10%. Then it outperformed the market almost every year. The cumulative outperformance is 49.37%, almost doubling the gain of S&P500 over the same period.
If you want to invest in this portfolio, we have detailed DIY guide here. We don’t expect this portfolio to outperform the market every year. The results in the last decade have been very satisfactory. By the way, we have just rebalanced the portfolio for 2016. You can see the detailed portfolio here if you are a Premium Member.
We have just finished our annual rebalance of the model portfolios based on different strategies we have. As we can see here, following Guru Strategies of Most Broadly Held Portfolio and Most Weighted Portfolio will outperform the market over time.
Among GuruFocus Value Strategies, Top 25 Undervalued Predictable Companies did the best. The portfolio outperformed the market by about 40% since 2009.
Though it will unlikely to outperform the market every year, but by following GuruFocus Guru Strategies and Value Strategies you can do pretty well over long term. If you want to invest following the Guru Broadest Held Strategy, please follow this DIY guide.
By the way, GuruFocus will host a Best Stock Ideas for 2016 contest starting next week. The contest will last 12 months, and the winners will be awarded $500 cash! Please get ready with your best ideas!
