TenBestStocks tracks the historical
performance of the TenBestStocks Model Portfolio identified
each week on the Portfolio Performance page.
The TenBestStocks Model Portfolio
performance is compared graphically against the best-known
market indices and indicators along with tables providing
a quarter-by-quarter performance comparison since TenBestStocks'
inception in 1999.
The Model Portfolio was established in May 1999 based on a
total investment of $10,000 allocated equally between the
TenBestStocks initially identified. Each week the Portfolio
has been adjusted based on changes in the TenBestStocks as
identified in the Weekly Web Update.
Stock transactions within the Model Portfolio are managed systematically.
On Wednesday of each week* (or on the next trading day after
Tuesday) any stock removed from the Model Portfolio during that
week is “sold” at Wednesday’s closing price.
Likewise, any stock added to the Portfolio is “purchased”
at Wednesday’s closing price. For each week between
the Model Portfolio quarterly rebalancing (discussed below),
the total sales proceeds of stocks removed from the Model Portfolio
are divided on an equal dollar basis between stocks added to
the
Model Portfolio to the nearest whole share without rebalancing.
The remaining cash balance typically reflects less than 0.1%
of the total model Portfolio value.
Prior to July 2002, no portfolio rebalancing was performed on
the Model Portfolio. Since July 3, 2002, the TenBestStocks
Model Portfolio has been rebalanced on the first Wednesday of
each calendar quarter providing an equal dollar value distribution
(10% to each issue). As
a result of this portfolio management discipline, since May
1999 the allocation of TenBestStocks within the Model Portfolio
has ranged between 7 and 20% of the total Model Portfolio value
for any individual stock; the great majority of issues have
been allocated between 8.5% and 12%
of the portfolio. The value of the TenBestStocks Model
Portfolio is established on Friday of each week -- or on the
last trading day of the week should there be a market holiday.
All TenBestStocks Model Portfolio performance graphs are updated
weekly. Past performance of the TenBestStocks Model Portfolio
is no assurance of future results. Your individual results
may be more or less than the Model Portfolio.
This transaction system is has been designed to reflect the
requirements of the typical small to medium sized investor and
to minimize the impact of transaction costs while reflecting
a meaningful, rational, and relevant portfolio return history.
As previously mentioned, the Model Portfolio is now rebalanced
on a quarterly basis. (Rebalancing, however, does not
have a significant impact on the overall return.) Neither
the cost of commission trades nor dividends paid are factored
into the performance of the Model Portfolio. Transaction
costs associated
with Internet trades are modest and typically range in cost
between $5 to $20 per round turn for trades up to 1000 shares
or more. On a $100,000 portfolio duplicating the TenBestStocks
Model Portfolio, the net cost impact of commissions paid and
realized dividends is typically in
the range of 0.50% to 0.75% per year.
| The
TenBestStocks Model Portfolio provides an effective
performance index, or "barometer,"
of the top ranked stocks identified by the TenBestStocks
Method. An investor may certainly elect to model
his or her own portfolio directly on the Model Portfolio
to achieve a comparable performance. The greatest
value to the investor, however, can frequently be
realized by using the TenBestStocks Weekly Web Update
in combination with the Six-Month Rolling History
to identify a manageable number of highly qualified
stocks for prospective investment. All the necessary
tools and information are made available to the investor
- the top ten stock picks basics are provided.
The investor can be fully confident that this pool
of stocks is objectively developed and maintained
through a continuously validated statistical process
that is proven to identify stocks with exceptional
growth potential and resistance to decline. |
*Prior to May 18, 2001 TenBestStocks Model Portfolio transactions
were performed on
Friday of each week.
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