Special Situations Real Money Portfolio Returns 50 Percent in 2009

The Special Situations Real Money Portfolio exceeded all my expectations in 2009. When all was said and done, the portfolio returned 50.50% in 2009! My unique special situations portfolio achieved the 50% return that Warren Buffett once said he could achieve if he managed less than $1 million.

My overall annualized rate of return since inception is 30.75%. The Special Situations Real Money Portfolio started on October 19, 2004 with just $2,000. Each year since then, I’ve added the maximum Coverdell Education Savings Account annual contribution of $2,000. The total amount I’ve invested in this account is $12,000. Given that the Special Situations Real Money Portfolio ended 2009 with a total value of $30,938.09, my total profit as of December 31, 2009 is $18,938.09. The total return since inception is 157.30%. I hope to maintain this record of performance for the next eleven year until my son starts college.

Stepping back a bit, I’d like to talk a bit about how last month went. As you might recall, the Special Situations Real Money Portfolio in November ended with a balance of $26,972.91. I made a $2,000 deposit last month. The portfolio had a balance of $30,938.09 when the market closed on December 31, 2009.  Adjusting for the deposit, the portfolio gained 6.78% in December. As of December 31, 2009, the Special Situations Real Money Portfolio held the following positions:

Date Quant. Ticker Description Price Amount
1/1/2010 Cash $1.00 $10,986.50
1/1/2010 210 MAXX MAXXAM $10.90 $2,289.00
1/1/2010 400 COMS 3Com $7.50 $3,000.00
1/1/2010 1000 JAVA Sun Microsystems $9.37 $9,370.00
1/1/2010 4999 KDCE Kid Castle Educational $0.15 $749.85
1/1/2010 108.4164 SHO Sunstone Hotel Investors $8.88 $962.74
1/1/2010 400 WEST Western Sizzlin $8.95 $3,580.00

If you want to review all the trades of this portfolio and my special situations research, subscribe to Fat Pitch Financials Contributor’s Corner. As a premium member, you will be notified of new trades in the Special Situations Real Money Portfolio, have access in all the research used to find special situations opportunities for this portfolio, and be able to participate in the active forum composed of fellow savvy investors interested in special situation opportunities.

Disclosure: I own shares of MAXXAM (MAXX), 3Com (COMS), Sun Microsystems (JAVA), Kid Castle Educational (KDCE), Sunstone Hotel Investors (SHO), and Western Sizzlin (WEST).

5 thoughts on “Special Situations Real Money Portfolio Returns 50 Percent in 2009

  • January 24, 2010 at 6:22 pm

    While that sounds great but only a 50% return from real money lagged the overall market (53%) and just about every other stock if you had bought it either in the beggining of the year or rebalanced in march than you would have come out with gains possibly in the 3 figures as far as percentage is concerned.

  • September 13, 2010 at 7:43 pm

    would be interesting to see how this compares to this year or 2011.

  • September 14, 2010 at 8:55 am

    Crinak, as of August 31, 2010 the Special Situations Real Money Portfolio was up 20.96% year-to-date. See the recent Special Situations Real Money Portfolio August 2010 update for more details. That’s not quite as good my 2009 performance, but I think you’ll agree it is still quite impressive.

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