Tuesday, February 06, 2007

January performance

I haven't written in a while, but my IRA portfolio turned in a spectacular January:

Date      S&P 500  Delta   IRA    Delta  BRK A  S&P 500   NAV    BRK A
01/31/07  1.41%    1.07%   2.47%  2.42%  0.05%  1,438.24  24.44  110,050.00

Here are a few highlights:

  • Sold Pegasus Communications for $3.25 a share.
  • Bought Eupa for 35¢ a share.
  • Sold Meritage Hospitality for $5.50(!) a share. (That works out to a 295.71% annualized return.)
  • My Oracle call option expired. The good news is that I was not forced to sell my Oracle shares. The bad news is that Oracle lost more than 12% of its value in that time. Fortunately, I didn't want to sell anyway.
  • Select Comfort gained nearly 6% for the month. I guess the shock of bad news in December wore off.
  • Sally Beauty gained 9% for the month. I guess the shock of bad news in December wore off.
  • Alberto-Culver gained nearly 5% for the month based, I suppose, on a 5.5¢ a share quarterly dividend.
  • Oracle and Canon had poor Januaries based on being large companies with little real news.
  • Berkshire Hathaway, as you can see above, ended flat.
  • Earned 4.85% (annualized) on any cash I had lying around.

All of this is to say that my stock prices bounced around randomly. I'd say the going-private transactions that I've participated in show true skill since they've worked exactly as I expected. My other investments have did well in January mostly due to luck. Long term, I expect to have more good months than bad ones and make more good decisions than bad, but one month isn't a big enough sample.

February is turning out to be my best month yet. My IRA balance right now is over $5 million. That easily surpasses the half million dollars I "had" back in September. But I expect my balance will return to earth shortly when my Eupa are cashed in.

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