Gone RuleBreaker Shopping!

This month’s tracking portfolio, David Gardner’s Stock Advisors Rule Breakers, monitors the progress made over the last 14 years.

It’s a dashboard that the Plungers Investment Club would love. (At least for the non-core and adventure component of their holdings.) This month’s tracking portfolio, David Gardner’s Stock Advisors Rule Breakers, monitors the progress made over the last 14 years. We place $100 into each selection/decision and track the progress of that $100 investment over time.

Paths to Super Investor Returns?

The active positions in the RuleBreaker with the highest return forecasts are featured in the accompanying dashboard excerpt. Rule Breakers focuses primarily on underappreciated growth stocks with solid management and a sustainable business strategy. This time-tested approach works. In fact, the Motley Fool Rule Breakers have consistently been among the leaders of Hulbert Financial’s rankings of 5-year performance. The media has taken notice as well with the Wall Street Journal previously calling Rule Breakers manager David Gardner one of the best stock pickers on Earth.

Our cover story review this month documented a 15.1% absolute return over the trailing 14 years — excess relative return of +7.2% over the Wilshire 5000. These results were achieved with a few roller coaster stocks like Amazon, Apple, Priceline.com, Activision Blizzard and Netflix. All of these stocks will have their speed bump moments.

The consensus forecasts in the dashboards may or may not resemble the expectations built by David and the Rulebreaker team of analysts. Tracking portfolio companies that David would deem worthy of study right now include: Illumina (ILMN), Texas Roadhouse (TXRH), Activision Blizzard (ATVI), McCormick & Co. (MKC), Amazon.com (AMZN), Apple (AAPL), Gilead Sciences (GILD) and Disney (Walt) (DIS).

Restoration Hardware (RH) is down 59.4% since selection back on 3/20/15. Do the fundamentals support a closer look? A strengthening economy could provide some bolstering as home repairs mend. The generic pharmaceuticals have been solid and Mylan Labs (MYL) has been on the radar for years. We featured Boston Beer (SAM) recently in the Fave Five and long-time Rulebreaker favorites like Apple, Gilead Sciences, Priceline.com and Amazon have returned to the sweet spot with return forecasts likely to place them in the buy zone. PayPal (PYPL) was recently featured by Kim Butcher during a Round Table session and Starbucks (SBUX) can be a jolt. There’s much to study here. Break at will.

Stock Advisor Rule Breakers. Based on the flagship Motley Fool newsletter, $100 is invested into mentioned companies. The top 16 (by PAR) is shown here. The 14-year annualized rate of return is 15.1%. Source: http://www.fool.com, Stock Advisor


Mark Robertson is founder and managing partner of Manifest Investing, a source for research and portfolio management for long term investors. Fool on!

Context Among Chaos

Achieving and documenting incrementally higher returns.  It matters.  The power and potential are significant.  In a brief discussion with an investment industry colleague yesterday, we lamented the charlatans and carnival barkers in the investment arena who soap box about spectacular returns.  All the while, a skeptical investing nation yawns when somebody like David Gardner beats the market by 710 basis points (+7.1%) over 14 years of investing.  The challenge is (1) capturing the attention of seekers with numbers like 15% when the barkers are howling things like “81% guaranteed” and (2) educating the masses about the impact of years and a few extra percentage points vividly on display in the Schlossian graphic below.

We’ll be looking at a few of our demonstration portfolios as we did for David Gardner’s RuleBreakers, but for now, we’ll simply observe that the MANIFEST 40 has 10.6 years under its belt with an annualized total return of 9.0% and a relative (excess) return of +3.6%

Feel free to participate in a collective pat on the back in consideration of the performance of your most widely-followed stocks.

This slide from this weekend’s Super Investor presentation underscores and hammers home the powerful potential behind achieving a an extra percentage point advantage or two … and why — as a community of investors — we aim for +5%.

Schloss 39 years