How I Beat Berkshire Hathaway BRKB in 2006

[billyjoe]

In late 2004 I convinced my son , Jimmy, then 19 to contribute $1500 to a Roth IRA. In Dec. '05 he put in another $1500 to raise his retirement fund to $3000. I managed the fund. In '05 there was one stock sale at a loss of 54.94 and 200 shares of HOM held at a loss of $396. Entering '06 his Roth was valued at $2549.06 and my investing was losing him money fast. Things took a turn for the good when I purchased 75 shares of STX on 1/6/06 and HOM began to move. Here's a record of what followed:

Stock------Purchase---------Sale----------Gain----------% Gain

75 STX---1/06/06-21.43--1/13/06-23.67---153.04---------9.52%

200 HOM--11/14/05-6.39--4/10/06-7.025---112.05--------8.67

100 EGY--1/19/06--5.04--9/26/06--7.08----174.07-------33.54

50 MSFT--4/28/06-24.27--11/22/06-29.90--251.55-------20.48

219 SPIL--4/18/06--6.40---11/24/06--7.71--274.37-------19.49*

35 WLT---11/30/06-46.64--12/05/06-49.00---52.64--------3.20

55.66 CNE--11/16/06--13.63---Open----------8.47---------1.11**

15 AAPL---11/22/06--90.09---Open---------(93.70)-------6.86

*includes 9.5% stock dividend
** includes .66/ share from reinvestment of divy

Jimmy's cash and stock 1/03/06--$2549.06--12/29/06-$3915.09- +53.59%

Berkshire Hathaway BRKB 1/03--- $2925.00--12/29/06-$3666.00- +25.33%

Around 11/22/06 both funds were close to the $3600 level and I was tempted to sell everything and buy a share of BRKB , but that would have been boring and I'm glad I didn't. Now if I can repeat this in '07 it will be something to brag about.

------------billyjoe

[jiesen]

Billyjoe,

Using BRKB as a benchmark is a good way to measure your success, though a single year's result is not enough data to reach any conclusions. If you can beat Warren Buffett consistently, you should probably be managing money for a living. If not, you should probably be buying BRKB.

Great job on the successful year of trading! You are HUGE!!!

[billyjoe]

Jiesen,
I'll admit there was luck involved especially with HOM that was down over 30% at one point before it started moving. But to second guess the decision to sell at 7.08 , I could have held until it hit 14.00 as I did in another account. Or 3rd guessing I could still be holding today at 5.86 an almost 9% loss.

-----------billyjoe

[spikefader]

Congrats on a wonderful performance, billyjoe. You're HUGE!

[MickyMouse]

Congrats on a wonderful performance, billyjoe. You're HUGE!

When spike changed his avatar to bear, watch out!

[New-born baby]

Big Congrats!

I was just talking with the "Oracle" today, and he said he'd like you to visit him in Omaha and give him a few pointers. We both agree: BILLYJOE IS HUGE!

[billyjoe]

Just figured the results of the portion of IRA that I trade on line. It was up 11.01% this year despite a couple major screwups on my part. It's
better than putting it in the bank.

-----------billyjoe

[mrmarket]

Warren Buffet had a very interesting marital arrangement.....

[billyjoe]

Warren Buffet had a very interesting marital arrangement.....

Yes he did. Both were happy and now he's with the love of his life I think.

---------billyjoe

[billyjoe]

Update 2007 vs. Warren Buffett's BRKB

Another year has ended and I'm sure you were all on the edge of your seats wondering if Jimmy's Roth would beat BRKB this year. Here are the results.

Beginning of 2007 balances........BRKB...$3666

Jimmy's Roth--------$3915.09.... remember we beat Warren last year 53.59% to 25.33%

Final balance 2007.......BRKB--------$4736....+29.19%

Jimmy had a lead of .4% at today's market open.......but Warren gained $51 today

Final balance 2007....Jimmy's Roth includes $1500 contribution....$6918.50 a gain of .......+27.76% Warren wins but it took him 365 days to do it. Wait until next year!


I'll publish all our trades (9 sells and 6 open positions) if anybody wants to see them.

------------billyjoe

[spikefader]

Another year has ended and I'm sure you were all on the edge of your seats wondering if Jimmy's Roth would beat BRKB this year. Here are the results.

Beginning of 2007 balances........BRKB...$3666

Jimmy's Roth--------$3915.09.... remember we beat Warren last year 53.59% to 25.33%

Final balance 2007.......BRKB--------$4736....+29.19%

Jimmy had a lead of .4% at today's market open.......but Warren gained $51 today

Final balance 2007....Jimmy's Roth includes $1500 contribution....$6918.50 a gain of .......+27.76% Warren wins but it took him 365 days to do it. Wait until next year!


I'll publish all our trades (9 sells and 6 open positions) if anybody wants to see them.

------------billyjoe

Great job, billyjoe!

I'd be interested in seeing the trades, including open/close dates.

[billyjoe]

Great job, billyjoe!

I'd be interested in seeing the trades, including open/close dates.

Spike,
I finished me New Years shrimp and got all the figgers here. There may be some confusion since all dividends were reinvested into full and partial shares, partial shares are given in dollar amounts at sale, and there were spinoffs from MO and ASD that were sold. In addition, ASD became TT and NE had a 2-1 split. If percentages are off a little, it's due to brokerage fees. I didn't show yearly maintenance fee either.

Beginning balance in cash and stocks Jan '07-----$3915.09. A $1500 contribution was added to the Roth in January bringing total to $5415.09

Bought 15 AAPL @90.09 11/22/06
Sold 15 AAPL @110.44 5/18/07 gain 20.15% or $275.32 sold too soon

Bought 55 CNE @13.63 11/16/06 paid monster div. which was reinvested
Sold 61 CNE @ 15.37 10/01/07 gain 20.67% or $158.02
Sold .243 CNE 10/01/07 cash $3.73

Bought 40 HAL @ 29.74 1/3/07
Sold 40 HAL @32.62 5/9/07 gain 7.08% or $85.28 again sold too soon
Sold .092 HAL cash $3.00

Bought 100 ICOC @9.91 6/22/07
Sold 100 ICOC @ 12.00 7/9/07 gain 17.80% or $179.08

Bought 20 MO @83.27
Spun off into KFT sold 13 shares gain of $25.66
Cash as part of spinoff of KFT $4.06

Bought 50 Q (QWST) @8.96 3/30/07
Sold 50 Q @9.48 6/12/07 loss after fees of $3.91 or .84%

Bought 1000 SPKL @ 1.00 10/08/07
Sold 500 SPKL @1.93 10/17/08 gain of 87.21% or $442.55
Sold 500 SPKL @1.66 10/26/07 gain of 60.61% or $307.56

Bought 50 SWSI @26.45 6/4/07
Sold 50 SWSI @23.80 7/19/07 loss of 12.14% or $162.42

Bought 18 ASD @61.66 7/19/07
Spun off 6 shares WBC Sold @44.95 loss of 24.66% or $83.40
18 shares ASD changed to TT which is still held

Above sales net gain $1234.53

Still holding 20.662 shares MO buy @83.27 reduced value after spinoff currently held @75.58 gain of 20.26% or $263.05

Holding 28.043 NE Bought @99.06 7/11/07 2-1 split gain of 13.05% or $182.92 current price 56.51

Holding 50 MATK bought @24.85 6/19/07 currently 29.58 gain of 17.67% or $222.05

Holding 18.145 TT after change from ASD currently 46.71 gain of 7.74% or $60.86

Holding 90.744 KFED bought @12.39 currently 10.09 loss of 18.98% or $214.44

Holding 100 FBFS bought @9.00 currently 5.30 loss of 42.07% or $384.95

Yeah I know, the last 2, stupid. Won't make that mistake in 2008.

Final value of stocks 12/31/07---$6918.50---beginning 1/03/07--$5415.09 gain of 27.76%

----------billyjoe

[jiesen]

Very impressive results, Billyjoe! To be able to keep up with Buffett like that shows incredible investment skill. I wish you all the best in your repeat performance for 2008!

Now I should take a page from your book, so I can step up my own game.