The 2006 Buy List

The 2006 trading year has come to a close. All in all, it was a very good year for our Buy List.

The 20 stocks on the Buy List were up an average of 10.68%, while the S&P 500 was up 13.62%. Including dividends, the Buy List was up 11.43%, and the S&P 500 was up 15.80%. The daily volatility of the Buy List was 19.22% greater than the S&P 500. The Buy List had a “beta” of 1.0404, and its daily changes were 76% correlated with the S&P 500.

I track the Buy List as if it were a $1 million portfolio. Here’s how each stock did during 2006:

Stock Ticker 12/30/05 Shares Value 12/29/06 Value Gain
SEI Investments SEIC $37.00 1351.3514 $50,000 $59.56 $80,486.49 60.97%
FactSet Research FDS $41.16 1214.7716 $50,000 $56.48 $68,610.30 37.22%
Harley-Davidson HOG $51.49 971.0623 $50,000 $70.47 $68,430.77 36.86%
Danaher DHR $55.78 896.3786 $50,000 $72.44 $64,933.67 29.87%
Fiserv FISV $43.27 1155.5350 $50,000 $52.42 $60,573.14 21.15%
Expeditors Intl* EXPD $33.755 1481.2620 $50,000 $40.50 $59,991.11 19.96%
Wachovia** WB $47.64554 1049.4163 $50,000 $56.95 $59,764.26 19.52%
Sysco SYY $31.05 1610.3060 $50,000 $36.76 $59,194.85 18.39%
Biomet BMET $36.57 1367.2409 $50,000 $41.27 $56,426.03 12.85%
Donaldson DCI $31.80 1572.3270 $50,000 $34.71 $54,575.47 9.15%
Bed Bath & Beyond BBBY $36.15 1383.1259 $50,000 $38.10 $52,697.09 5.39%
Respironics RESP $37.07 1348.7996 $50,000 $37.75 $50,917.18 1.83%
Home Depot HD $40.48 1235.1799 $50,000 $40.16 $49,604.74 -0.79%
AFLAC AFL $46.42 1077.1219 $50,000 $46.00 $49,547.61 -0.90%
Varian Medical VAR $50.34 993.2459 $50,000 $47.57 $47,248.71 -5.50%
Medtronic MDT $57.57 868.5079 $50,000 $53.51 $46,473.86 -7.05%
Brown & Brown BRO $30.54 1637.1971 $50,000 $28.21 $46,185.33 -7.63%
Fair Isaac FIC $44.17 1131.9900 $50,000 $40.65 $46,015.39 -7.97%
UnitedHealth UNH $62.14 804.6347 $50,000 $53.73 $43,233.02 -13.53%
Dell DELL $29.95 1669.4491 $50,000 $25.09 $41,886.48 -16.23%
Total $1,000,000 $1,106,795.50 10.68%

* Expeditors split 2-for-1 on June 26.
** The original position was Golden West Financial (GDW), which was bought out by Wachovia at the end of the third quarter. The merger called for Golden West shareholders to get 1.051 shares of Wachovia stock, plus $18.65 cash for each share of Golden West. At the beginning of 2006, we tracked 757.5758 shares of Golden West priced at $66 each. With the merger, we then had 796.2122 shares of WB (757.5758*1.051), plus $14,128.79 in cash (757.5758*$18.65). For track record purposes, I assumed the entire cash position was immediately converted into shares of Wachovia. Going by the September 29 closing price of $55.80 for WB, the cash was exchanged for another 253.2041 shares ($14,128.79/$55.80). So we then had a total position of 1049.4163 shares of WB with a cost basis of $47.64554 ($50,000/1049.4163).

Here’s how the Buy List did against the S&P:
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Posted by on December 29th, 2006 at 7:33 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.