In a general sense, my mission is always…
In a general sense, my mission is always to find the best companies in the fastest growing sectors and invest in their stocks when they are cheap and to find the worst companies in declining sectors and short them when they are way overvalued.
More specifically for the last year, I’ve been operating the Marketwatch Revolution Investing on two primary tenets for:
1. Betting big on the app revolution
2. Betting against alternative energy, cable distribution, and the mortgage servicers
We bet big on the app revolution and the best positioned, cheapest stocks in it, such as Ciena, Google and Riverbed, because it is truly the fastest growing marketplace in the history of the planet. People will be buying more than a billion smartphones and tablets a year within a handful of years, and they’ll be using hundreds of billions of apps for trillions of different wants and needs. And we bet against an energy sector that’s losing the government largesse its dependent upon during these fiscal crisis times, a declining entertainment distribution technology and the slow-motion endgame of an almost-but-not-quite-decriminalized criminal financial system.
I recently condensed the Revolution Investing model portfolio along with all my favorite picks into a special report called “14 Stocks That Should Double in 2011 (and 6 That Should Collapse)” and you can see the results of this approach for yourself:
Since publishing “20 Trades for 2011” on December 14, 2010:Our long picks have given a return of 12%Our short picks have given a return of +0.1%The S&P 500, our benchmark, is up 6.5%YTD:Our long picks have given a return of 7%And our short positions have returned almost 1%.The S&P 500 is up 5%
In other words, our stock picks have flat out been blowing away the market, as our longs are up huge and are shorts are down a bit even as the markets have rallied a little bit both since I published my special report and year to date.
Here’s hoping that we can continue to deliver that kind of outperformance. I’ll certainly continue to give it my all.