Stocks I’ve bought this year:

SymbolSharesCurrent PriceCurrent ValuePurchase DateCost$ Gain% Gain
BWLD40 33.211,328.4002/28/20051,500.00 -171.60 -11.44
BWLD40 33.211,328.4005/05/20051,160.00 168.40 14.52
COLM 40 47.73 1,909.2006/30/2005 1,950.80 -41.60 -2.13
FHR 50 42.41 2,120.5008/02/2005 1,611.50 509.00 31.59
FLML 80 18.88 1,510.4008/05/2005 1,500.00 10.40 0.69
MIDD40 86.503,460.0002/28/20052,189.20 1,270.80 58.05
MIDD20 86.50 1,750.0003/17/20051,061.79 688.21 64.82
NTES 20 56.16 1,123.2008/08/2005 1,504.00 -380.80 -25.32
SCSS 60 27.35 1,641.0010/06/2005 1,103.40 537.60 48.72
SNDA 120 15.24 1,828.8012/19/2005 2,040.00 -211.20 -10.35
UFCS 50 40.43 2,021.5003/28/2005 1,713.00 308.50 18.01
Total$20,001$17,333$2668+15.39

Making double digit gains in the same year as the purchase is great. Since my stock purchases lean towards the small-caps, I’ll not only compare my portfolio against the SP500, but also against the Russel 2000 small-cap index, and the Wilshire 5000 total market index.

My Annualized Gain: +29.1%
SP 500: +2.8%
Wilshire 5000: +4.4%
Russel 2000: +3.1%

Sales

The only stock I sold this year was Apple (AAPL). I bought it way back in the day after the iMacs were starting to gain traction. It was $40/share. A few weeks later it (along with quite a few other tech stocks) was slashed in half. Fortunately I made my investment based on business fundamentals and wasn’t scared off by the falling price. This March, I sold it for $44.81/share (89.32/share split-adjusted), or a 123% profit during a span of years in which the Nasdaq lost ground and the SP500 didn’t budge an inch. All in all not too bad, except for the fact that if I’d held on to it, it would now be worth $71.89/share (143.78 split-adjusted). In other words, I could have had a 259% gain, if I’d known it would keep going. I don’t really think it’s rational or possible to try to time the market though, and worrying about could-have-beens based on short term market fluctuations is the road to madness. I think AAPL was and still is priced for perfection. It’s a great company that might justify the valuation, but the stock will be punished severley as soon as it doesn’t.

Other holdings

Up until this year, I’ve been too poor to put away much money. I have a sizable (for me) stake in Amgen (AMGN), which I bought for about $50/share, and is now worth $78.9/share. I’ve held it for several years, but considering how badly the market has done over those years I’m happy with a 58% profit. I also have a little bit of money in an SP500 index fund, which has basically been stagnant. Oh yes, I own about a hundred shares of stock in my old company High Speed Access Corp. That is the same company I blogged about here. Last time I checked, they were worth a total of $0.00003. Other than that there may be a few things sitting around in my Roth IRA I had with Merril Lynch before I switched to Ameritrade, but nothing of value.

Chinese Companies

As my friend pointed out the other day, my two Chinese holdings are losers up to this point. 網易(Nasdaq: NTES) is down 25% in about four months and 盛大(Nasdaq: SNDA) is down about 10% in less than a month. I’m not really concerned by either of these drops. I was interested in buying 盛大 at three times its current price. As far as I’m concerned these are good companies on sale. If 網易 drops much more I may increase my position. However, there’s another Chinese company I have my eye on for the next time I have some spending money. Overall, I remain extremely bullish on Chinese companies.

Looking Forward

I’ve learned a lot about financial analysis and company valuation in the past year. I studied both to some extent before, but its much different now that I’m betting a significant portion of my hard earned cash on my research. It certainly adds a dilligence that I didn’t have when I was just putting a little aside here and there, when it was convenient. While I’m in it for the long haul, and one year doesn’t really mean much, it was a good year. I likely won’t have returns even remotely like this next year, but I’m still going to pat myself on the back and go forward with a bit more confidence than I had before.

Legal Disclaimer: All of the information in this article is accurate to the best of my knowledge. However, I make no guarantee about the accuracy of anything written above. I’m not responsible for any mis-typings, or any other errors in the information. If you purchase any stock solely because I did, you do so at your own risk.