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DailyBubble News

A finance blogger has outperformed Warren Buffett’s Berkshire Hathaway and Cathie Wood’s ARK Invest since 2018 by filling his ETF with ‘boring’ stocks

Eddy Elfenbein, a finance blogger and ETF manager, has been outperforming Berkshire Hathaway and ARK since 2018. His strategy involves setting a 25-name “buy list” for his exchange-traded fund at the beginning of each year and not making any changes for the next 12 months. This approach has helped his AdvisorShares Focused Equity ETF, ticker CWS, achieve returns of 110%, compared to 74% for Berkshire Hathaway and 45% for ARK.

Elfenbein, who runs the Crossing Wall Street blog, has been publishing his buy list since 2006, with the ETF launching in 2016 in response to reader requests. Only five stocks in the fund are swapped out each year, with no other trading or shuffling taking place.

The fund, which is now approaching $100 million in assets under management, follows an equal-weighted strategy where each stock accounts for about 4% of the fund. The average holding period for stocks in the fund is five years.

Some of the stocks on Elfenbein’s buy list this year include Hershey, Intuit, Moody’s, HEICO, and Silgan. Many of these names, such as Aflac, have been long-time holdings in the fund. When selecting stocks, Elfenbein focuses on whether he would be comfortable holding them for an average of five years.

The compound gain for his buy list over 18 years is at 573%, outperforming the S&P 500’s 447% return during the same period. Elfenbein’s philosophy is to be as passive as possible with investing, emphasizing the importance of discipline and long-term thinking.

Overall, Elfenbein’s set-and-forget approach to investing has proven to be successful, demonstrating that a boring, disciplined portfolio can yield impressive results over time.

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