Rule
#1 Investing just may be a dream for a do-it-yourself portfolio manager who
hopes to reduce risk of loss to a minimum. Yes, its name is also Warren
Buffett’s admonition: Never lose money.
The strategy is AAII’s version of the Phil Town way of
evaluating stocks worthy of acquisition. Through May 31, 2013, its YTD (year to
date) price performance was +24.1%. Its 10-year annual price gain: +20.7%.
5-year: +21.8%. Its 3-year: +42.9%.
Those numbers seem to tell us that cautionary investing doesn’t
necessarily lead to tiny gains. Phil spells out his strategy at length in his
book: “Payback
Time.”
On May 31, 2013, these were the stocks that met the tests of
Phil Town’s strategy: QCOR (questcor Pharmaceuticals), MELI (Mercadolibre
Inc.), Apple (AAPL), ZAGG (Zagg, Inc.), and KLIC (Kulicke and Soffa
Industries).
Selections
updated through June 30 will be made available by AAII later this month to
AAII members. If you’re not
among them, you can join now online.
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