"His portfolio has outperformed every mutual fund in the US."
- Sunday Express
Yale and Harvard Endowments long term average annual returns. Source: Yale and Harvard Endowments, Tenstocks.com as of June 30, 2009. Tenstocks.com result in 20 year column is for 18 years.
Ten year annualized average annual returns as of 12/31/09 for Marty Whitman (TAVFX), Warren Buffett (BRK.B), Bruce Berkowitz (FAIRX) and Bill Miller (LMVTX). Robert Bruce (BRUFX) and Ken Heebner (CGMFX) had the top performing general mutual funds for the ten years ending 12/31/09. The top sector fund over this period was USAA Precious Metals (USAGX) with a 24.44% AAAR. Source: Morningstar, Tenstocks.com
The chart above shows the average annual percentage of value added (alpha generated) by different managers over different time frames. It does not represent the value added of all managers over their investing lifetimes. It only represents the periods we looked at or could find data for. Chris Rees (Lev) is for the Tenstocks.com portfolio which occasionally utilizes leverage. Chris Rees (Unlev) is the 10STX model portfolio at Marketocracy which does not use leverage. Nigel Thomas and Andrew Bolton are widely regarded as the best British managers. Their benchmark is the FTSE 100. All other benchmarks are S&P 500. All the managers in this chart except Chris Rees are managing large amounts of capital which makes it much harder to outperform and add value. From data compiled in 2009. Sources: Gerald S. Martin, The Times, Jeremy Siegel, Morningstar, Tenstocks.com.
The Tenstocks.com portfolio has occasionally used leverage. The Tenstocks unlevered portfolio is the Marketocracy 10STX portfolio. Data as of 12/31/2010. FAIRX performance reflects expenses of 1%. Tenstocks(L) performance reflects no expenses. Tenstocks(U) reflects 2% expenses. Sources: Tenstocks.com, Marketocracy, Morningstar, Berkshire Hathaway, CNBC. Mr. Bruce Berkowitz and Mr. Warren Buffett manage large amounts of capital which make it more difficult to outperform and add value.
Charts:
1. Growth of $10,000 for 20 years ending 12/31/2011
2. Annual Alpha 5 year rolling averages ending 12/31/2011
3. Growth of $10,000 for decade ending 12/31/2010.
4. Average annual returns for decade ending 12/31/2009.
5. We don't need no education. Yale and Harvard. 6/30/2009.
6. Value added by manager. Performance minus market. 2009.
Because of year to year volatility involved with managing a concentrated portfolio like Tenstocks.com, it is better to judge performance over a five year rolling period. Prior to 2000 we were sailing most of the time and were passive investors. We became fully active investors in 2000. Source: Tenstocks.com
Source: Berkshire Hathaway, CNBC, Yahoo, Tenstocks.com
