I’ve made no secret of my first step when ferreting out stocks
worthy of further analysis. In one sentence, my first of two steps identifies stocks
(or ETFs or no-load mutual funds) with consistent
gains in total returns across the last 10 calendar years, with no year of
double-digit loss.
Working with Value Line data the other day, I developed a
fresh list of 25 stocks with double-digit average annual total returns across 2003
through 2012. Of the top ten, six
show average annual returns between 20% and 45% yearly.
My #1 stock, FFIN, suffered two down years: -7.12% in 2007 and
-2.89% in 2010. In 10-year average, FFIN was up 14.61% in total return, but of
greater interest to me:
FFIN was up 50.92% in market-crash 2008, leading my pack of 25
consistent stocks. The top ten for 2008 averaged gains of 24.27% that year.
All 25 were up by double digits in 2008.
I don’t own FFIN, but I’ll probably buy it when my chart
suggests a recovery has begun from a recent time out. My
max chart for FFIN shows a reasonably steady up trend started in 2000. My three-month
chart suggests an up trend remains in place despite some sideways movement
earlier this year.
Never forget: All investments and savings
are gambles on the unknown future and thus subject to loss.
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