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Highlights
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I hope you all had a great Thanksgiving holiday with your friends and family—or both. I had the chance to celebrate twice, while visiting my mom in the suburbs of Philadelphia. On Thursday, we had a turkey dinner at a close friend’s house, and then on Saturday, we made it over to my brother’s house. His wife works as a nurse, so they had to celebrate on the weekend.
Portfolio Performance Overview
Because it was a slow week of news and updates from our team, I thought it’d be a good idea to provide you some perspective on two of our best-performing model portfolios, or basically our highest-conviction model portfolios: the Buy on Pullback Model Portfolio #12 and the Open Forum Model Portfolio. As of today, their returns continue to comfortably outperform the major indexes.
A Word on the PortfoliosBuy on Pullback The Buy on Pullback portfolios really are just designed to take advantage of inappropriate price dips in stock prices. We anticipate anywhere from 20% to 100% potential gains from the drop, depending on the situation. Sometimes you will see stocks from the other model portfolios end up on the Buy on Pullback portfolio if those opportunities arise. Open Forum Focus The Open Forum Model Portfolio is intended to include stocks that we think can go up at least 50% in the short term and also have long-term, multi-bagger potential. |
A question I often get is, “What are some of these companies worth? What are their price targets?” That’s a tough question to answer, especially when I look at things with a longer-term lens. But I understand that some of you, particularly newer subscribers, would like to have that color, especially if you’re looking at some of these stocks that have gone up substantially and wondering what to do. So stay tuned, I’ll be working on some shorter-term price targets and have an update for you soon.
MS Microcaps Quality Index (MSMqi)
I also wanted to bring up the performance of the MS Microcaps Quality Index (MSMqi), launched in February 2022, up 18.9% last month, better than the S&P 500’s and NASDAQ’s gains of 9.73% and 8.14%, respectively. The MSMqi also exceeded IShares Microcap Index, its closest comparable index, by 7% in November.
The average return across all 102 stocks added to the MSMqi since inception in February 2022 is currently 87.23%.
Remember, this index requires that stocks of a certain quality are only added when they also meet multi-bagger markers.
Since 2022, I’ve been saying that quality is back, and the performance of the MSMqi is showing that that is the case. It also shows that great companies that marinate over time just get better.
I think it’s a pretty incredible feat that the index was still able to beat the smaller-cap indexes by a big margin in November. We weren’t sure how the index was going to perform once the Russell and the microcap ETFs started humming. We’ll see how things go moving forward, but so far, I’m very happy with the outcome of the index, which also serves as a research funnel for some of the stocks that eventually make it to GeoInvesting’s model portfolios.
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During this slow week for news in our coverage universe, a few earnings crossed the wires, but we’re paying particular attention to the earnings reports of two stocks which currently reside in our Run to $1 Model Portfolio and are discussed below.
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