My 8-Year Old's Portfolio is Kicking Your Portfolio's...
The portfolio's three stocks -- Madison Square Garden(MSG) , Viacom(VIAB) and Kraft(KFT) -- outperform the SPDR Dow Jones Industrial Average ETF(DIA) , the SPDR S&P 500 Index ETF(SPY) and the PowerShares QQQ Trust(QQQ) , which tracks the Nasdaq-100 index.
Not only has the portfolio outperformed the broader market, but two stocks, MSG and KFT, hit 52-week highs on Friday. VIAB sits just shy of the 52-week high it hit on August 17.
Taken together, the stocks have returned 9.8% since the portfolio's inception. That beats the return of Bill Gross's Pimco Total Return Fund as well as Fidelity Contrafund by considerable margins.
So, what's driving this thing to such excellent performance?
We used the Peter Lynch method of investing, but -- and this is key -- we thought critically about our choices. Who knows where this will go from here, but, as it stands, together, my daughter and I made well-thought-out moves.
First, we didn't flub the "buy-what-you-know" strategy, as so many investors do.