2010 was a great year for me. I was encouraged by my friend’s father to start this blog and share my thoughts with the world, and it has gone far better than I ever expected. In addition, I learned more in 2010 about investing than ever before. I valued my first company legitimately (NE), rather than my 2009 lemming-like behavior of following Buffett into companies like the Burlington Northern, P&G, and Coke (I am rather ashamed to admit that, but I promise not to let it happen again!). I thought of my own valuation technique and my results were phenomenal. I am up 43.55% after transaction fees and before taxes (don’t worry, I triple-checked it) with my personal account, compared to 12.8% for the S&P 500, and I only purchased:
- Noble Corp
- The Buckle, Inc.
- Hallmark Financial
- Berkshire Hathaway
- Burlington Northern (in merger with BH)
Although none of these companies was up more than 35% for the time I held them, compound interest created this stellar result. My gains in Berkshire Hathaway created about a 22% return, which was then invested into Noble Corp. Noble then shot up about 30% and I cut my holding in it slightly because it was such a large holding. I placed that money into Aeropostale and it is up 4%. Buckle’s results were realized fully and were then invested into Aeropostale & Hallmark, which are slightly up. Also, none of this was achieved through the use of leverage. It is interesting to think I have a Return on Equity of 44% for 2010.
It seems that all my activity was a source of great timing, however all purchases and sales were price-driven, and done solely on a value-basis. I would never buy or sell into something because I thought it would look better next week or next month. Also, I do not expect to achieve anywhere near this again for 2011, but I do hope to enjoy myself and learn more in the following year.
It seems I have gone back on my word, seeing as I haven’t yet posted about Seabright (SBX). I’ve realized that long-tailed insurance is a very difficult thing to analyze for a novice in the industry, so it has been placed on the backburner until I have Internet again. I’ve spent much of my winter break traveling and it has disrupted my research (much to my dismay). One company that has been easy to analyze is Reliv International and I find it very interesting. You may see a post about that before Seabright, but I’m not quite finished looking into this one either.
To my followers (the few of you who do read what I have to say), I’ve enjoyed talking to you and sharing back and forth. It has been a pleasure & I look forward to more of it 2011. Thank you for all your support, Happy Holidays and enjoy your New Years!