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With three weeks left, our Buy List is up 10.88% for the year, compared with 12.94% for the S&P 500 (not including dividends). The Buy List is about 20% more volatile than the rest of the market.

By looking at the current results of each stock on the Buy List, you can see why diversification is so important. Look at the spread of the results (from a high of 61% to a loss of -19%). Five stocks are currently up over 29%, yet eight stocks are down for the year.

I should add that Biomet (BMET) finally made a new high today. This stock has been terrified of $40 a share, but nevertheless, it finally hit that number for the first time in 21 months.

I'll unveil the new Buy List for 2007 next Friday. The rules are, once the Buy List is set, I can't touch it for the entire year.

Posted by edelfenbein at December 8, 2006 9:49 PM