Author: Conrad Leifur
Disclaimer: Conrad owns WAG, COST, HAL, HNZ and MSFT in his Covestor S&P 500 Best of Breed model.
September 30, 2010: The model posted solid results in September as it outperformed the S&P by over 1%. Significant contributors to performance were Walgreen (WAG), which posted better than expected earnings, Costco (COST), and Halliburton (HAL). During the monthly rebalancing we added to Microsoft (MSFT) and trimmed Heinz (HNZ).
The market’s surprisingly strong performance in September served as a reminder of why we don’t try to time the market but rather focus our efforts on outperforming the S&P 500. Our guess of what the market will do in October, November, and December is no better than yours, but we do believe that equities will be a good place to be over the next decade and that the much-maligned buy and hold strategy will prove to be a profitable one.
