EA Portfolio Beats The Market 5th Straight Year

THE ENLIGHTENED-AMERICAN PORTFOLIO SPREADSHEET

  • Enlightened-American Portfolio: +7.6% in 2011 (my actual IRR, including cash balance)
  • Dow Jones Industrial Average:+5.5%
  • Nasdaq: -1.8%
  • S&P 500: 0.0%
  • DJ Wilshire 5000: -1.4%
  • Russell 2000: -5.5%

Warren Buffett once stated an investor needed 5 years minimum of track record before any judgment onĀ  investment acumen can be made. I have now cleared this hurdle during the toughest trading markets in at least a generation, so some expectations to meet investment objectives may be reasonable at this point.

While beating the market is gratifying, I must reiterate my primary investment objective is not to beat the market every year. Rather, I seek to outperform the market during down years (2011 may be included in this category) and to remain within shouting distance of the market during bullish years. These were the objectives laid out by Buffett during his hedge fund years and if accomplished over the long term, should lead to preservation and growth of capital.

While year-end recaps are customary with the new year, it may also be instructive to review 2011 for clues on how to continue gains in 2012.

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