10 stocks for 10 years

Posted on April 22, 2005  Comments (16)

Topic: Investment

I decided to look at selecting a portfolio of stocks I would be comfortable putting into an IRA for 10 years. My main criteria was companies with a history of large positive cash flow (that seemed likely to continue that trend).

The 10 stocks I came up with are (closing price on 22 April 2005 – % of portofilo invested):

  • Templeton Dragon Fund (TDF – 16.40 – 16%) – a closed end mutual fund investing in China, Hong Kong, Taiwan, Singapore… This one doesn’t fit the criteria but does a great job of filling out the portfolio in my opinion.
  • Dell (DELL – 36.43 – 12%)
  • Toyota (TM – 72.42 – 12%)
  • Google (GOOG – 215.81 – 12%)
  • Pfizer (PFE – 27.22 – 8%)
  • Amazon (AMZN – 33.04 – 8%) They are only just starting to generate cash but I like their prospects.
  • Intel (INTC – 23.24 – 8%)
  • Petro China (PTR – 61.68 – 8%) Investing in PTR is based on the potential for China, the prospects for oil over the next 10-20 years and Warren Buffet’s ownership of the stock.
  • Cisco (CSCO – 17.43 – 8%)
  • First Data (FDC – 37.48 – 8%)

Thankfully I don’t have to staying locked into decisions for 10 years. But, if I had to, this is a portfolio I would feel comfortable with today. It is overweighted on technology (which is another reason for including Petro China). Templeton Dragon Fund also provides a nice counter weight to all the technology. I would like to have a higher exposure to heath care, but I couldn’t find the stocks that seemed equal to those above.

I have been using marketocracy, since 2001, to manage a portfolio of stocks (marketocracy does a great job of tracking performance for you which I find quite convenient). This year my fund has suffered. At the beginning of this year the Darvamore Fund has exceeded the S&P 500 by over 10% annually on average). This year however the fund’s overall performance results have been reduced to just 5.5% over the S&P 500 annually. Hopefully that trend will turn around soon.

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16 Responses to “10 stocks for 10 years”

  1. Curious Cat Management Improvement Blog » Blog Archive » Toyota Again Get Positive Press
    June 25th, 2006 @ 2:03 pm

    […] 10 stocks for 10 years by curiouscat   Tags: Management, Lean thinking, Deming, Toyota Production System (TPS)   Permalink to: Toyota Again Get Positive Press […]

  2. Curious Cat Management Improvement Blog » Blog Archive » Tesco: Lean Provision
    July 27th, 2006 @ 11:13 am

    […] Great stuff. In fact I would add Tesco to our marketocracy portfolio created as a result of our 10 stock for 10 years post. Why would, (not did)? Martketocracy won’t process purchase request for Tesco. You can view Tesco on Google Finance but you can’t add it to your portfolio. Tesco is a retailer based in England that is expanding internationally – rapidly. They are moving into the United States in 2007. Warren Buffett picked up over $300 million worth of Tesco stock in March. […]

  3. Curious Cat Management Improvement Blog » 10 Stocks for 10 Years Update
    October 7th, 2006 @ 7:18 pm

    […] In April of last year I posted on 10 stocks for 10 years. At that time I also setup an fund through Marketocracy, which allows for 3rd party tracking of investing results. See the results so far on Marketocracy’s site. Thusfar the portfolio is up 20%, in under 9 months (versus 13% for the S&P 500 for the same period of time. […]

  4. Curious Cat Management Improvement Blog » 10 Stocks for 10 Years Update
    December 11th, 2006 @ 9:51 pm

    […] In April of 2005 I wrote: 10 stocks for 10 years. At that time I also created a fund through Marketocracy. Thus far the portfolio is up 15.8% annually (versus 15.3% for the S&P 500) – see more below… […]

  5. Curious Cat Investing and Economics Blog » 10 Stocks for 10 Years Update - Feb 2007
    June 14th, 2007 @ 7:22 pm

    At this time the stocks in the marketocracy portfolio in order of returns – Google (116% return, 15% of the portfolio), PetroChina (88%, 7%), Toyota (85%, 12%), Templeton Dragon Fund (69%, 12%)…

  6. Curious Cat Investing and Economics Blog » 12 Stocks for 10 Years Update - Jun 2007
    June 20th, 2007 @ 7:38 pm

    In order of current returns – Google 134%, PetroChina 127%, Amazon 92%, Templeton Dragon Fund 73%, Toyota 69%, Cisco 54%…

  7. 12 Stocks for 10 Years Update - Oct 2007 at Curious Cat Investing and Economics Blog
    October 23rd, 2007 @ 11:14 pm

    The current annualized rate or return is 20% for the life of the portfolio (the S&P 500 annualized return for the same period is 13.4%)

  8. 12 Stocks for 10 Years Update - Feb 2008 at Curious Cat Investing and Economics Blog
    February 4th, 2008 @ 8:39 am

    At this point I am most positive on Google, Petro China, Toyota, Templeton Dragon Fund and Tesco…

  9. CuriousCat: 12 Stocks for 10 Years Update for June 2008
    June 4th, 2008 @ 8:09 pm

    At this point I am most positive on Google, Toyota, Templeton Dragon Fund and Tesco. I am wary of Dell – they seem to be moving in the wrong direction, but I am willing to give them longer to improve…

  10. Curious Cat Management Blog: Amazon’s Amazing Achievement
    July 26th, 2008 @ 9:25 am

    I have mentioned I like the way Amazon, and Jeff Bezos, have been managing in several posts. Recently Amazon has added very strong financial results to that portfolio of things they do well…

  11. Curious Cat Management Improvement Blog » Jeff Bezos and Root Cause Analysis
    January 28th, 2009 @ 8:07 am

    […] do the simple things and you are well on your way to great success. Of the 10 stocks in my original 10 stocks for 10 years post Amazon is one of 4 that are […]

  12. 12 Stocks for 10 Years - March 2009 Update at Curious Cat Investing and Economics Blog
    March 15th, 2009 @ 9:08 am

    By current returns: Amazon 91%, Google 49%, Templeton Dragon Fund 40%, PetroChina 11%…

  13. 12 Stocks for 10 Years, July 2009 Update at Curious Cat Investing and Economics Blog
    July 26th, 2009 @ 2:08 pm

    By current total returns: Amazon 136%, Google 105%, Templeton Dragon Fund 80%, PetroChina 78%, Templeton Emerging Market Fund 28%…

  14. 11 Stocks for 10 Years – March 2010 Update at Curious Cat Investing and Economics Blog
    March 24th, 2010 @ 8:01 am

    […] created the 10 stocks for 10 years portfolio in April of 2005. In order to track performance created a marketocracy portfolio but had to make some minor […]

  15. 11 Stocks for 10 Years – July 2010 Update at Curious Cat Investing and Economics Blog
    July 15th, 2010 @ 8:28 pm

    […] created the 10 stocks for 10 years portfolio in April of 2005. The current marketocracy* calculated annualized rate or return (which excludes Tesco) is 4.2% (the […]

  16. 12 Stocks for 10 Years: Oct 2010 Update at Curious Cat Investing and Economics Blog
    October 27th, 2010 @ 8:59 am

    […] the original portfolio I created in April of 2005, I included Dell. Apple was one of the stocks I was considering but I chose not to include it. That […]

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