Tuesday, June 11, 2013

My Stock of the Day: FFIN


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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