PORTFOLIO PAGE
COMPARE BUY and HOLD S&P500 INDEX with PREDICTABLE INVESTING PORTFOLIO
(This Page was last Updated on June 4, 2010)
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The PI portfolio started with $100,000 on January 3, 1995.
The current portfolio value is $392,931.
The PI portfolio has grown to 3.93 times in 15.42 years.
The Compound Annual return over this period is 9.28%.
We have generated 223% more profit than just buying and holding the S&P500 index.
The initial $100,000 was invested on January 3, 1995, in the Vanguard Index 500 Mutual Fund, VFINX. A sell signal was issued on October 24, 2000, and a subsequent buy on June 6, 2003. Between these two dates, the money was invested in the Vanguard Money Market Prime Mutual Fund, symbol VMMXX, which paid a total of 7% interest in this period. This sequence of events is shown in the graph and in the table below.
| uy Date |
Fund Symbol |
Price ($/shr) |
VALUE($) |
Sell Date |
Price ($/shr) |
VALUE($) |
Gain |
| 01/03/95 |
VFINX |
42.96 |
100,000 |
10/24/00 |
129.1 |
300,512 |
201% |
| 10/24/00 |
VMMXX |
1.00 |
300512 |
06/06/03 |
1.00 |
321,548 |
7.0% |
| 06/06/03 |
VFINX |
91.46 |
321,548 |
none |
still invested |
see note |
below |
NOTES: We re-entered the market on 6/6/2003, and are still fully invested in the Vanguard 500 Index Fund, VFINX.
WHY VFINX?: We use the Vanguard 500 Index Fund, VFINX, for several reasons, but mostly because it is a simple, easy to understand, widely tracked, and a all-in-one investment. VFINX is a very-low cost Vanguard mutual fund, that has a fabulous long-term record. It tracks the S&P500 index, which consists of the 500 largest companies traded in the US. The index represents more than 80% of the total market capitalization of the US stock market, and is diversified over all market sectors.
Over the long term, VFINX has beaten 80% of all mutual funds available in the marketplace.
It automatically provides global diversification, as it includes many large foreign companies that are traded here. Additional global diversification occurs as many companies in the index generate significant portions of their revenue outside the US.
Future success is aided by periodic rebalancing, dropping poorly performing companies, or ones that are acquired, and replacing them with successful fast-growing growing enterprises. For instance, in late March 2006, Burlington Resources (acquired by Conoco-Philips) was dropped, and replaced by Google.
DISCLAIMER: I am not an investment adviser, and do not have a formal degree or training in economics. The markets are risky, and investing is risky. Past performance is no guarantee of future success. The purpose of this website is solely for information and learning, and is not an offer to buy or sell any security. Opinions are based on historical research, and the data are believed to be reliable. Our past success does not guarantee that future results will be profitable.
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