It has only been 8 months since I opened up the premium membership to the Value Stock Guide stock picking service but I have my portfolio audited for over 2 years now. In October I started posting the long term performance record of my portfolio on the site.
As of October 31, 2011, the Value stock Guide premium portfolio comfortably beat S&P 500 index by over 20 percentage points.
For example,
- for 12 months ending Oct 31, 2011, VSG portfolio returned 29.89% compared to a 5.92% return with S&P 500 in the same period
- Since inception (Jul 23, 2009), the annualized return of VSG portfolio is 24.57% compared to a 0.09% loss for S&P 500
For a portfolio that focuses on long term value investing, these returns are quite spectacular given that in general undervalued stocks have not been such good performers as an asset class so far during this down turn. Coming out of recession small cap value stocks generally outperform all other asset classes by a wide margin and with the strict and disciplined stock selection I have no doubt the VSG premium portfolio will continue to do better than the market in general going forward and significantly so.
For anyone who does more than occasionally dabble in the stock market, following my recommendations would have easily and handsomely out performed the market after adjusting for the membership fee. Think of it as a hedge fund, except I only charge a nominal annual subscription fee regardless of the asset size and do not take 20% off the profits from the top as the hedge funds do. But I do emulate some of the positive aspects of a hedge fund. Your fee is guaranteed so if I do not beat the market in any year, you have the right to ask for a full refund of the fee you paid for that year.
And you do not have to be an accredited investor to join and profit.
