Blog Index Investing Challenge - Leg 1

Well, last week I started the first "Blog Investing Challenge", wherein I challenged all comers to "invest" as private equity investors in the various blogs I have linked to from my site.

The original posting is located here, and provides some background to the challenge.

To date, we've had Barry Ritholtz from The Big Picture come by and comment, Rick from Value Discipline come by, and George of Fat Pitch Financials actually "lay down" his bet ($500 on Value Discipline, and $100 on his own site [the maximum permitted in that circumstance]). George also offered us a mysterious tip that "Sometimes data issues can mislead the market." Not too sure what that meant, but I'm sure he'll reveal more in due course.

I placed my bet 50/50 on Value Discipline and The Big Picture (i.e $300 on each). Let's compare and contrast: Last week:

• Abnormal Returns - $14,678
• Random Roger - $44,034
• The Big Picture - $478,165
• Peridot Capital - $9,032
• Value Discipline - $4,516
• Fat Pitch Financial - $14,678

This week:

• Abnormal Returns - $14,678
• Random Roger - $44,034
• The Big Picture - $478,165
• Peridot Capital - $9,032
• Value Discipline - $4,516
• Fat Pitch Financial - $14,678

Holy cow! That's right, nobody's value has moved: a dead heat. Except yours truly that is - my blog is now "worth $1,129.08" :-) . However, that's unfortunate, ;-) since it's NOT part of the contest.

But this little exercise just shows you that investing is really meant to be a longer-term venture - and not the 100-150% annual turnover that a lot of mutual funds have.

Anyway, we'll follow this up again later, and remember that it's not too late for YOU to join in, just read the rules at the prior link (including the comments), and feel free to add your portfolio here as a comment, and we'll follow it too.

Anyway, as I'm taking my kids up snow-boarding and skiing at Big White, this will be my only post of the day. See you again tomorrow!




JW

The Confused Capitalist