IBD50 model portfolio

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 Remember, this model has ZERO money management.  We just update positions roughly once a month.

We updated our portfolio using the latest IBD50 Top-10 list with pricing as at the close on 12/31/13.  This is our monthly portfolio which is adjusted every month to include the top-10 stocks in the IBD50.  The positions are updated as of 11/29/13.

Talk about the strength of the bull market in 2013!  The portfolio has a gain of 55.4% for the year.  This compares to our weekly model which had a gain of 67% last Friday night.  It is up to you to decide if the extra forty trading cycles a year is worth the additional gain (don’t forget to factor in trading costs and capital gains tax if you are working in a taxable account).

Also not be forgotten is that in our model portfolio we use no money management whatsoever. None.  Simple trailing stops would have preserved large gains from GMCR and would also have cut off some trades that were closed out a month later at significant losses.

NuSkin amazes with a 125% gain in six months.  We also sold out Fleetcor at the end of November for a better than 100% gain in a year.

You only have to buy twelve newspapers a year for this information………

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The cheapest way to get the data you need to follow this strategy is to subscribe to the print edition of IBD which you may do HERE.

6 Responses to “IBD50 model portfolio”

  1. Jim Patterson July 19, 2011 at 8:35 pm #

    Anthony,
    Excellent info! Did you ever think about trying this method using the IBD Sector leaders screen? I think you might get a bigger pop. I may try your IBD top 10 (or sector leaders)
    Jim Patterson, VV and IBD user.

    • Anthony July 19, 2011 at 8:40 pm #

      Jim, thanks.
      I set this portfolio up to work on the KISS principal. I have found that making this just pure rules-based works best. Let us know how it works out if you run the sector leaders screen.

  2. Larry June 18, 2013 at 12:49 pm #

    Anthony,
    Stumbled upon your blog….interesting investing idea. Just signed up. So correct me if I’m wrong. You invest in the top 10 IBD50 list and remove/add at the end of each month. So you are always holding 10 stocks. I can assume that you are always 100% invested at all times, with no stop loss orders and no technical analysis. Do you recommend 10% in each of the 10 stocks? I signed up, so I can assume an update at least every month? Sounds pretty simple. How long have you been doing this and what kind of results have there been? Any concerns about an extended correction?

    Thanks,
    Larry, Stocktwits user

    • Paladin Money June 18, 2013 at 5:34 pm #

      Larry, we started this MODEL portfolio in late January 2011 with $50,000. You have described the mechanics of the portfolio accurately. I suggest you read our post of Feb 9th in the main blog which should add some color. As this is a model portfolio I don’t use any money management. In a real portfolio, I think one would. My personal inclination (which may not work for you), without backtesting, is to buy or not based on IBD market calls and sell based on trailing stops. Just one suggestion.

  3. Paul Roberts August 3, 2013 at 12:17 pm #

    Anthony,

    I like your IBD 50 Top 10 strategy. I am a retired engineer with skill in programming with visual basic in a Microsoft Access environment and would like to do some backtesting of you strategy going back to 2007. Would you care to share your monthly Top 10 list going back as far as you have data? I want to run “what ifs” using no stops, optimizing and using stop loss orders from initial investment prices, and optimizing and using trailing stops.

    Paul

  4. Steve Grow January 11, 2014 at 4:06 pm #

    Anthony,
    I have been an inactive observer for some time now, and wish I would have put money into your simple system. It seemed too easy to be true.
    Do you rebalance 10% each stock monthly, or do you just sell those stocks dropped from the list and purchase the newbies with the proceeds?
    Same question for both the IBD top 10 and Intersection X.
    Steve — eIBD subscriber

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