Robert stepleman

“Sleeping Soundly Portfolio” had a solid year

Robert stepleman

Investors should be thrilled when they review their fourth quarter brokerage reports, as their U.S. equity portfolios could be ahead by more than 20%, almost as much as the 28.6% return of the S&P 500 (dividends reinvested included). My more conservative “Sleeping Soundly Portfolio” performed quite well but did not match the S&P 500.

The $ 120,000 dollar-weighted 12-stock portfolio was designed to have both volatility and lower total returns (capital appreciation plus unreinvested dividends) which are consistent but may slightly delay the S&P 500 when it increases, but maybe outperform when it drops significantly. This doesn’t mean that when the stock market goes down the portfolio won’t go down, just that it might not go down that much.

I monitor this portfolio on a quarterly basis with no reinvestment of dividends and no voluntary changes. The shares were “bought” at their 2020 closing prices. Disclaimer: Investors should exercise due diligence before selecting a security.

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