No. of Recommendations: 18
Hi, Fools.

As we rapidly approach my two-year anniversary with Global Gains, I thought I'd post the results of all of my buy and sell decisions. I keep careful track of these annually and cross-reference them with my contemporaneous notes in the hopes of constantly learning and improving my processes. Please note that these are slightly unlike our official scorecard because dividends are included and because it assumes $1,000 invested in each position v. $1,000 invested in the EFA benchmark.

Stock Date Return Benchmark Return
CGA 10/9/2008 412.2% EFA 19.0%
CEO 11/13/2008 141.0% EFA 19.8%
MELI 12/11/2008 70.7% EFA 22.9%
ABB 1/8/2009 38.5% EFA 14.7%
AOB 2/12/2009 -3.3% EFA 34.9%
MICC 3/12/2009 129.0% EFA 48.6%
PM 4/9/2009 45.3% EFA 28.2%
CMFO 5/14/2009 74.4% EFA 17.1%
BAP 6/11/2009 17.1% EFA 6.2%
UEPS 7/8/2009 13.8% EFA 15.0%
ESGR 8/13/2009 13.7% EFA -2.0%
SYT 9/10/2009 3.0% EFA -6.6%
BLX 10/8/2009 -7.4% EFA -8.5%
CMFO 11/12/2009 -17.7% EFA -8.9%
GSH 12/10/2009 -6.3% EFA -8.7%
PVD 1/14/2010 18.5% EFA -13.4%
CEL 2/11/2010 -8.6% EFA -3.9%
UEPS 3/11/2010 -24.1% EFA -9.3%
YONG 4/8/2010 0.3% EFA -11.1%
WWIN 5/13/2010 -8.6% EFA -2.5%
ADDYY.PK 6/10/2010 -1.2% EFA 2.7%
BLX 7/8/2010 -2.0% EFA 0.3%
FHCO 8/12/2010 5.3% EFA -1.4%
Total Tim 39.3% EFA 6.7%

And here are the sells (I know anragupta appreciates this):

Stock Date Return Since Sell
MELI 4/30/2009 143.7%
AOB 10/15/2009 -51.1%
MICC 3/18/2010 3.5%
CMFO 6/29/2010 45.0%
BAP 11/12/2009 36.2%
GIGM 6/11/2009 -63.3%
EDU 8/27/2009 36.2%
CX 7/30/2009 -9.4%
HDB 11/12/2009 28.0%
ALV 3/26/2009 224.3%
PT 6/24/2010 8.7%
TTM 2/5/2009 472.0%
FNDT 2/18/2010 -5.2%
CFSG 6/11/2009 -51.0%
LUX 3/18/2009 67.8%
IDEXF.PK 11/12/2000 3.8%

Poor formatting aside, what I conclude from this is that I've been doing a fairly decent job identifying attractive buy oppurtunities in different markets, industries, market cap sizes, and investing climates -- achieving both total return and accuracy. I credit this to our improved investing processes that include regular idea meetings with formal one-pagers and leveraging of our entire GG team. I think I'd like to double-down on our idea meeting process to include more people or perhaps even more ideas.

On the flip side, our selling record has been mixed-to-poor, and I think the reason for that is that I may have been to risk-averse -- particularly when it came to the auto industry (TTM and ALV). I'm of two minds here, though, because worries about business quality are also what prompted me to jettison GIGM.

In terms of more valuation-based sells, while MELI, BAP, HDB, and EDU are both up, it got us out of FNDT, CFSG, and MICC.

That said, there's an argument to be made that we just shouldn't sell anything -- the returns would be better. But the common thread that ties the best sells together is clear, deteriorating business quality in addition to a stretched valuation, so maybe that's the combination that needs to be in place before I sell anything going forward.

Just some musings on some interesting results. Thoughts and feedback are appreciated. Perhaps we need to have a regular sell idea meeting just as we have a regular new idea meeting.

Tim
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