Investing Round Table (January 2013)

Photo Credit: h.koppdelaney (With Permission) cc

We’ll get together again on Tuesday night, January 29 at 8:30 PM ET to share and explore some long-term investing concepts and ideas. You’re invited to join us as Ken Kavula, Cy Lynch, Hugh McManus and Mark Robertson share their current favorite four stocks.

Why should you care? Because it’s part of a long-term demonstration of success. Ideas are shared and analysis methods discussed. Are these noble knights right all of the time? Of course not. But they’ve been sticking their necks out for years — it’s not always easy.

Chances are, you just might discover an idea worthy of further study and analysis …

As the following graphic shows, the collective performance of the selections made since July-2009 (Round Table since inception) have now outperformed the Wilshire 5000 by nearly two percentage points (yes, annualized, of course). That’s a performance level rarely achieved by “average investors” but frequently experienced by practitioners in our community based on the methods and principles of the modern investment club movement.

The +5% line is the overall long-term objective. The lower line (closer to -5%) is known as the DALBAR line and is representative of results achieved by “average investors” from 1992-2012. We also think of those levels as an example of a “Lynch Mob.” Peter Lynch has shared his frustrating, gut-wrenching, stories of personal friends who managed to experience LOSSES investing in Fidelity Magellan during a 15-year period when he achieved historical and rarely-matched +13% relative returns. This can only be achieved by performance-chasing (buying high and selling low) and Lynch anguished over watching some of his friends getting wrecked by their emotions and lack of discipline.

And yes, Virginia, most months we poll the Round Table audience and they vote on the ideas presented. To date, the collective performance of their wisdom-by-community selections is +5.0% per annum. There are times when more heads are better than one.

The Journey of Investing

Investing is a journey. And like a good vacation in paradise, it’s often done better and enjoyed more when we do it with friends.

We believe that the Round Table is one more iteration of an investment club, intended to share and explore the best ideas and practices.

We’re not bashful about channeling Jack Palance (and Billy Crystal) and others when we do this. In the past, we’ve shared thoughts on Sharing: Big, How to avoid ending up on the wrong end of spears … how patience can be genius in disguise … why we want to invest more like Spock and less like Kirk … how cow-tipping and muskrat pageantry link with prudent long-term investing … and more.

Do we talk about selling? Absolutely. In fact, Synaptics (SYNA) has been very good to the Round Table tracking portfolio — but will probably get raked over the selling coals on Tuesday night.

Stocks likely to be discussed: AeroVironment (AVAV), Body Central (BODY), Landauer (LDR), Microsoft (MSFT)

Program Note: As we do with many webcasts, we open up the “Green Room” and leave the floor open for questions, answers and socializing for up to 30 minutes before the official start of the program.

Session Archive (YouTube):  January 2013 Round Table

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