December 2005 Client Letter
http://www.brickfinancial.com/thethirdpig/archive/2006/01/december_2005_client_letter.html
Posted by Ben Taylor on January 6, 2006 08:03 AM
Our long-term performance
Last month marked the moment that our oldest portfolio, the Relative Value, hit three years old. We are just now entering into a time where our performance becomes more meaningful in determining our skill as stock pickers. Of course, even three years is still a short amount of time. One would need five years or more to make a decent assessment of a stock picker’s skill, 10 years would be better. The longer out you go, the less random chance is responsible for investment results. That said the 3-year mark may still be helpful in comparing our performance to date against our stated goals, which are to:
Increase your (and our) invested capital, consistent with reasonable risk, and
Outperform the market indices over long periods of time.
| 3-year Total Returns | Annualized 3-year Returns | Annualized Since Inception Returns† | 3-year Sharpe Ratio |
Relative Value | 89.55% | 23.76% | 22.32% | -- |
Choice | NA | NA | 12.57%* | -- |
Portfolio Average | 73.02% | 20.05% | 18.73% | 0.95 |
Wilshire 5000 | 57.51% | 16.35% | 13.76% | 1.13 |
| S&P 500 | 49.69% | 14.39% | 11.76% | 1.05 |
Avg. Domestic Equity Mutual Fund | 58.14% | 16.56% | 13.93% | 1.11 |
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†Relative Value model portfolio and the Portfolio Average since inception returns are from 12/6/2002. Index and mutual fund since inception returns are from 12/1/2002.
*Choice model portfolio since inception return is from 4/4/2003.
See the rest of Brick Financial Management's December 2005 client letter by clicking here