Tuesday, January 01, 2008

The Cohan Letter up 28% in 2007

My investment newsletter, The Cohan Letter, outperformed the S&P 500 in 2007. Specifically, the average stock mentioned in The Cohan Letter rose 28% in 2007. This compares favorably to the performance of the S&P 500 which rose 3.5% in 2007.

The three top performing stocks mentioned in The Cohan Letter were:
  • New Oriental (EDU) which rose 84% from $43.75 in April 2007 to $80.59 at year end;
  • CVRD (RIO) which climbed 77% from $18.50 in March 2007 to $32.67 at year end; and
  • Transocean (RIG) increased 66% from $86.20 in April 2007 to $143.15 at year end.

Each month The Cohan Letter mentions three stocks. If a stock mentioned declines 2% after it's mentioned, the stock is "sold" from the portfolio. This 2% stop loss rule contributes to the relatively high average return of The Cohan Letter.

Now in its sixth year of publication, The Cohan Letter's average annual return of 22% since its inception compares favorably to the 11.8% average return of the S&P 500 during that period.


Blogger Bruce said...

Whatever happened with this matter?

Couldn't find anthing on it yesterday.

Posted Oct 15th 2008 10:20AM by Peter Cohan
Filed under: Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), Amer Intl Group (AIG), Financial Crisis

The financial crisis is not over. If things were back to normal, banks would be lending to each other and to businesses and individuals. But measures of bank lending risk suggest fear is 12 times as high as it would be in normal times. The reason? Banks know more than you do about what's wrong. And they're not talking about it because they don't want you to withdraw your deposits and sell your stock. What they know is that on October 21st, some of the biggest players on Wall Street could be required to come up with $400 billion that some may not be able to pay.

7:48 AM  

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