REAL Stock Investing Portfolio Test

Sample REAL Portfolio: $338,718

S&P 500: $186,762

The REAL Stock Investing Strategy was tested using a sample of four stocks from my watchlist (Case Studies 1, 2, 5 and 9, because they had the most years of data). Each company was evaluated for ten years prior to investing. Then after those ten years, each one was reevaluated each year to ensure they still met REAL Stock quality criteria.

• An initial investment amount of $10,000 was used, and
• $10 dollars a day was contributed to the account.
• Each stock was evaluated daily and
• If they met the REAL criteria, and were within the REAL Stock Investing Strategy price limits, shares were bought for that stock.
• Shares were not bought if that particular stock already made up more than 25% of the portfolio.
• If a stock failed the REAL criteria for a certain year, it was sold immediately.
• As a comparison to the market, an S&P 500 portfolio was created. The S&P 500 is a collection of the 500 largest stocks in the US and is often used to represent the stock market. For the S&P 500 portfolio, $10 worth of shares were bought each day, regardless of the price. This models what the results would look like if contributions were made regularly, such as a portion of your paycheck going towards your retirement account. This is known as dollar-cost averaging, and is a popular way to invest.

What are REAL Stocks?

REAL Stocks are stocks that meet stringent quality criteria of the REAL Stock Investing Strategy that I developed. The criteria is so stringent that after evaluating over 1,000 stocks, only 20-30 stocks met the criteria. These are the stocks I consider to be the cream of the crop, the very best for generating market-beating returns over the long-term. REAL is an acronym:

Return on capital
Earnings growth
Advantages
Low debt