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the Robot Portfolio
Old 01-29-2006, 04:47 PM   #1
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the Robot Portfolio

For all you stock pickers out there…

Remember the Dogs of the Dow? How about the Foolish Four? Now we have the Robot Portfolio.

I saw this in a Canadian paper, the National Post, Jan 4, 2006, by John Dorfman, who writes for Bloomberg. The same article can be found at http://www.dorfmaninvestments.com

Dorfman has a program called Robot that scans all US stocks with market value over $500 million (about 2,100 of them). Unprofitable companies and those with more debt than equity are eliminated. This leaves about 1,400 stocks. From the survivors, the ten with the lowest PE ratio are selected. (Probably trailing PE, but he doesn’t say.) The portfolio is liquidated and rebuilt at the beginning of each year.

Dorfman claims a 727% total return over the past seven years (approximately 35%/year on average), compared to 13% total return for the S&P 500 over the same period.

Interesting, no?

Gypsy
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Re: the Robot Portfolio
Old 01-29-2006, 05:41 PM   #2
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Re: the Robot Portfolio

It's very impressive - his portfolio has beaten the S&P for the seventh year in a row. The question is that will this trend continue?
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Re: the Robot Portfolio
Old 01-29-2006, 07:27 PM   #3
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Re: the Robot Portfolio

I've been using his stock screen for the last 3 years and have been rewarded with market beating returns. For the past two years I have run a parallel screen with different stocks but the same criteria and they also beat the market not by mere points but multiples of the return on the S&P. I ran the screen and came up with differnt stocks but so far that port is up 9% while the real robot port is up 4-5% ytd. Can't argue with the results as it is used in my IRA accounts. Last year it was up about 29% and provided a nice bump for our retirement accounts.
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Re: the Robot Portfolio
Old 01-29-2006, 08:05 PM   #4
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Re: the Robot Portfolio

Here is his 2006 picks:

http://www.bloomberg.com/apps/news?p...umnist_dorfman
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Re: the Robot Portfolio
Old 01-29-2006, 09:00 PM   #5
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Re: the Robot Portfolio

Quote:
Dorfman Investments is an investment management firm specializing in deep-value, small and mid-cap stocks.
Quote:
The firm has outperformed the Standard & Poor's 500 Index in each of its five full years of existence.
So why are we comparing these returns to "the market"?

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Re: the Robot Portfolio
Old 01-30-2006, 07:45 AM   #6
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Re: the Robot Portfolio

Careful, you'll end up with the Cute Fuzzy Bunny curmudgeon award... :P
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Re: the Robot Portfolio
Old 01-30-2006, 01:01 PM   #7
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Re: the Robot Portfolio

Its a good award.

I let you look at my boobs.
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Re: the Robot Portfolio - Arif
Old 02-14-2006, 06:41 PM   #8
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Re: the Robot Portfolio - Arif

Arif:

I read Dorfman's columns all the time. I follow his screens just for ideas and like his commentary. You mentioned a "parallel screen." Can you define your tweaked version, or what extra parametrs you've added?

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Re: the Robot Portfolio
Old 02-15-2006, 11:18 AM   #9
 
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Re: the Robot Portfolio

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Attached Images
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Re: the Robot Portfolio
Old 02-15-2006, 12:14 PM   #10
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Re: the Robot Portfolio

Quote:
Originally Posted by TromboneAl
-
Al,

I think you have too much time on your hands now.
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Re: the Robot Portfolio
Old 02-15-2006, 12:16 PM   #11
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Re: the Robot Portfolio

Needs a pancake on its head.
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