Business, Finance, Grandverse Portfolio, Investing, Stocks

Can we beat the stock market??

The holy grail of any aspiring investor is to beat the stock market. This is what professional investors get paid big money to do.

And historically, it didn’t matter if they underperformed the major indices by a little bit, since there was really no other way of gaining exposure to the stock market.

That’s simply not the case today. The emergence of index funds and ETFs (Exchange Traded Funds) has made it cheap and easy to gain exposure to the stock market with the guarantee of earning market returns.

But its human nature to want more. So professional investors continue to seek out above-average returns, and we continue to pay them big money to do so. But are we getting our money’s worth?

A recent study showed that 82% of large-cap funds underperformed the S&P 500 Index over a ten-year period. So if the pros can’t beat the market, what hope do we have?

Let’s find out…

Below we’ve assembled two portfolios, both with a starting investment of $100,000.

  • The first is our benchmark portfolio, comprised of 420 shares of the SPDR S&P 500 ETF which follows the S&P 500 Index with the remainder held in cash.
  • The second is “The Grandverse Portfolio”, comprised of 15 stocks that we’ve chosen based on their underlying fundamentals with the remainder held in cash.

Can our portfolio beat the market? Only time will tell…

S&P 500 Benchmark Portfolio: (As of 7:30AM February 17, 2017)

Company

Previous Close Shares Invested
Cash $1,417.60
SPDR S&P 500 ETF (SPY) $234.72 420 $98,582.40
TOTAL $100,000.00

 

The Grandverse Portfolio: (As of 7:30AM February 17, 2017)

Company

Previous Close Shares Invested
Cash $2,860.50
Gilead Sciences (GILD) $70.31 90 $6,327.90
Corning Incorporated (GLW) $27.71 230 $6,373.30
Skyworks Solutions, Inc. (SWKS) $92.43 70 $6,470.10
The Goodyear Tire & Rubber Company (GT) $36.16 180 $6,508.80
Vipshop Holdings Limited (VIPS) $12.29 530 $6,513.70
United Therapeutics Corporation (UTHR) $168.42 40 $6,736.80
Chicago Board Options Exchange (CBOE) $80.40 80 $6,432.00
Spirit Airlines, Inc. (SAVE) $52.35 120 $6,282.00
First Solar Inc. (FSLR) $34.11 190 $6,480.90
USANA Health Sciences, Inc. (USNA) $59.25 110 $6,517.50
Comfort Systems USA, Inc. (FIX) $34.05 190 $6,469.50
Marcus & Millichap, Inc. (MMI) $27.50 240 $6,600.00
Solar Edge Technologies, Inc. (SEDG) $14.65 440 $6,446.00
IES Holdings, Inc. (IESC) $20.20 320 $6,464.00
Enzo Biochem, Inc. (ENZ) $6.65 980 $6,517.00
TOTAL $100,000.00

Disclaimer: This article is for entertainment purposes only and is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

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