The Big Winner Leading Our Model Portfolio Higher

Since we announced our latest portfolio “draft” selections, one Model Portfolio stock – Tesla (TSLA) – has been flying. Even after some recent profit taking, TSLA was higher by 25.6% from our November 19th selection to Thursday’s close. Out of our 10 equal-weighted stocks in our Model Portfolio, however, TSLA astoundingly ranked only 3rd best. Our investing strategy is simple and based on momentum. We want to own the best stocks – 10 leading stocks from 10 different leading industry groups – for 90 days (one earnings cycle). Then rinse and repeat.

Leadership is key. That’s where Wall Street gravitates and institutional accumulation results in higher prices. Our Model Portfolio vs. the S&P 500 has performed as follows for the past 8 quarters:

In the current quarter (11/19 through 12/10), our Model Portfolio is once again crushing the S&P 500, +13.49% vs. +2.41%. Our cumulative gains since inception (covering 2 years and 21 days) is now +201.86% vs. the S&P 500’s gain of +36.32% over the same time frame. That’s a TRIPLING of your money is just over two years!

TSLA remains a leader in autos ($DJUSAU), but our biggest winner thus far has been Roku, Inc. (ROKU), which has climbed a slightly higher +25.94%. Here’s the current chart of ROKU:

Leadership comes with a price. Many look at a chart like ROKU and believe it can’t go any higher. Many thought that on November 19th, before the latest surge in price. 9 of our 10 Model Portfolio component stocks are beating the S&P 500 this quarter, 5 of them by more than 10 percentage points, including both TSLA and ROKU.

Beginning tomorrow, we will have a couple of HUGE announcements, including our BEST-EVER annual membership special. If you’d like to hear more, please join our FREE EB Digest newsletter community where thousands of like-minded investors/traders like you are receiving timely information 3x per week. There’s no cost, no credit card required, and you may unsubscribe at any time. With a new year approaching (thankfully!), change the way you approach the stock market. This secular bull market is just beginning, as I’ve been writing about for the past several years, including during the midst of the pandemic. Opportunities abound and you need to take advantage of them. CLICK HERE to subscribe to our EB Digest newsletter and join our community!

Happy trading!

Tom Bowley, Chief Market Strategist, EarningsBeats.com