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Google Inc (GOOG), Apple Inc. (AAPL): A Timeless Lesson in Portfolio Management

In June I celebrated Father’s Day by putting together a portfolio of 10 stocks that remind me of my dad. It was just a way to say thanks to him for getting me interested in investing at such a young age. I also vowed to keep track of this portfolio, as I’m confident that through the years it will be a market-beater, making Mr. Market green with envy. Granted, it’s only been a bit more than a month since its inception, but let’s see where things stand today as we start winding down earnings season.

Google Inc (NASDAQ:GOOG)

The score
Out of all 10 stocks, only one is actually down on an absolute basis, and that’s Google Inc (NASDAQ:GOOG) (-0.1%). Six of the 10 are beating the market. The four losing to the market are Dicks Sporting Goods Inc (NYSE:DKS) (-2.9%), Apple Inc. (NASDAQ:AAPL) (-1.3%), Google Inc (NASDAQ:GOOG) (-3.5%), and United Parcel Service, Inc. (NYSE:UPS) (-2.9%). And on a simple, non-time-adjusted basis, if you invested $1,000 in each of the 10 picks, you’d have $10,556.68 today versus the $10,338.42 you’d have if you’d plunked it all down in the S&P 500. Not a bad start.

You got your winnahs

Ford Motor Company (NYSE:F) has been one of the stronger performers, and that’s for good reason. Things are looking up as quarterly revenue rose 15%, which resulted in bottom-line earnings growth of 19%,and management is seeing improving conditions in foreign markets like Europe and China. Ford Motor Company (NYSE:F) is gaining market share, too. In fact its share jumped from 16.1% in June 2012 to 16.7% in June 2013. General Motors Company (NYSE:GM), on the other hand, lost market share, falling from 19.3% to 18.9% over the same time period.

And you got your losahs
They can’t all be winners all of the time, though, and while I’m a big proponent of owning a basket of, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), two of those three are losing to the market right now. Google Inc (NASDAQ:GOOG)‘s most recent quarter wasn’t a bad one by any stretch, but it did in fact miss estimates on both sales and earnings. One of the concerns investors have today is the downward trend in cost-per-click (the amount of money Google Inc (NASDAQ:GOOG) makes when people click on its ads). Cost-per-click was down 6% over the same quarter last year as the move to mobile continues to grow. However, on the upside, the total number of paid clicks continues to trend upward with growth of 23% over the same time period.

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