DWDI vs SPDR - Fri, Oct 20, 2006
I never did mention the reasons behind adding those five stocks, now represented by AEFKY, to my portfolio. Four of the five stocks were Morningstar (MS) rated at 5 stars but one was not a MS rated stock - that one was Knight Transportation (KNX).
The KNX stock pick is partially based on trust and that trust is in the NAIC (National Association of Investors Corporation), also known as Better Investing. In the latest issue of Better Investing magazine KNX was listed as the third most actively bought stock among investment clubs (tied with Medtronics for third and Fastenal and Lowe's were first and second, respectively).
When I looked into KNX, I found it was a small, aggressive, growth company. Using MS portfolio analyzer I found that my taxable portfolio was lacking in speculative and aggressive types of stocks as well as small caps and KNX fit the bill for a small, aggressive type of stock. I trust the NAIC because I've been to their meetings and I know how stringent the criteria is for picking stocks. Also, Investment clubs tend to outperform the market by over 1%.
I was also a bit partial to KNX being a transportation type of company. Higher gas prices might take a bite out of short term profits but companies like KNX tend to adjust their prices to compensate and then when prices come back down those same type companies are not so quick to reduce their prices which tends to make for some nice numbers on the balance sheets.
It would seem my trust was well founded because after I bought the stock on 10/18/06 and after the market closed for the day, KNX posted record revenue and net income for the third quarter of 2006.
Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores
Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)
Daily recap for the 10 Stocks that make up The LISA Portfolio
The KNX stock pick is partially based on trust and that trust is in the NAIC (National Association of Investors Corporation), also known as Better Investing. In the latest issue of Better Investing magazine KNX was listed as the third most actively bought stock among investment clubs (tied with Medtronics for third and Fastenal and Lowe's were first and second, respectively).
When I looked into KNX, I found it was a small, aggressive, growth company. Using MS portfolio analyzer I found that my taxable portfolio was lacking in speculative and aggressive types of stocks as well as small caps and KNX fit the bill for a small, aggressive type of stock. I trust the NAIC because I've been to their meetings and I know how stringent the criteria is for picking stocks. Also, Investment clubs tend to outperform the market by over 1%.
I was also a bit partial to KNX being a transportation type of company. Higher gas prices might take a bite out of short term profits but companies like KNX tend to adjust their prices to compensate and then when prices come back down those same type companies are not so quick to reduce their prices which tends to make for some nice numbers on the balance sheets.
It would seem my trust was well founded because after I bought the stock on 10/18/06 and after the market closed for the day, KNX posted record revenue and net income for the third quarter of 2006.
Major Markets; DWDI, LISA, SPDRs & Diamonds
Day Ending Scores
| Market | % Change | Value |
| Dow | -0.08% | 12,002.29 |
| S&P 500 | +0.12% | 1,368.60 |
| NASDAQ | +0.06% | 2,342.30 |
| . | . | . |
| DWD Indexes | . | . |
| DWDI | +0.19 | 1,046.54 |
| LISA | +0.93 | 1,041.28 |
| Warm & Fuzzy | +0.52 | 1,067.76 |
| Ambitious | -0.47 | 1,011.20 |
| AEFKY | -1.00 | 1,026.00 |
| . | . | . |
| Benchmark Indicies | . | . |
| Diamonds DIA | -0.06% | 1,025.04 |
| Spiders SPY | +0.02% | 1,040.85 |
| Personal Portfolio | -0.27 |
| Skip's List | 0.06 |
Daily recap for the 10 Stocks that make up the Dollar Wise Decisions Index (DWDI)
| Stock | % Change | Value |
| Anheuser-Busch | -1.42 | 100.36 |
| Biomet | -0.45 | 108.78 |
| Fastenal | -1.08 | 108.75 |
| Home Depot | 0.22 | 100.08 |
| Johnson&Johnson | 0.85 | 107.29 |
| Medtronic | 0.75 | 103.95 |
| Microsoft | 0.49 | 106.64 |
| Wal-Mart | 1.81 | 102.24 |
| Washington Post | -1.43 | 104.02 |
| Wrigley | 2.16 | 104.44 |
Daily recap for the 10 Stocks that make up The LISA Portfolio
| Stock | % Change | Value |
| 3M | 2.71 | 107.39 |
| Coca-Cola | 4.10 | 106.27 |
| Daimler-Chrysler AG | -0.02 | 104.50 |
| Home Depot | 0.22 | 100.08 |
| Humana | 2.31 | 101.61 |
| Johnson & Johnson | 0.85 | 107.29 |
| Lowe's Companies | -0.82 | 106.78 |
| Target | 1.01 | 105.78 |
| Toyota Motor ADR | 0.69 | 108.03 |
| Worthington Industries | 2.07 | 93.56 |
posted by Scott at
8:29 PM
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