Poetic Portfolios

It is often said that 75% of mutual fund managers fail to beat the S&P 500. This percentage fluctuates based on the year and length of time, but the fact remains that most mutual funds do not beat the market. The U.S. stock market, however, does not represent the pinnacle of performance. From 1926-1999, the U.S. stock market had an average annual return of 11%. In order to achieve superior performance, it is necessary to treat an investment portfolio like a business and learn the ways of individual stocks.

I began investing about 10 years ago, starting with mutual funds and a 401k. I quickly realized, almost intuitively, that individual stocks could provide very good returns if the proper amount of research was performed. I allocated a small portion of my investment funds to individual stocks, and began my education. This small allocation is the genesis of my first portfolio: Two Roads Diverged.

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