10% Return


If you look at our portfolio via the Scottrade snapshots that I send each week, what you see is only part of our total performance as a club.  Yes, we have made huge gains from the loss (albeit not realized because we are still holding) in UA by making more conscious picks going forward.  But what Scottrade indicates is the total gains and losses averaged out to a net gain on the total portfolio of about 1%.  For the total portfolio this might be true but we have consistently acquired shares that well out perform the net gain reflected.

Our loss in UA has been washed out by the gains in Visa, the S&P index ETF and the QQQ index.  However, the hidden value is all the gains our members earned by buying the dips that we have rode out together.  Essentially, we dollar cost averaged in gains which is reflected in your Bivio account but not so clearly in the Scottrade. This is great news for our members because most of our day one members have about a 10% return on investment.  

Dollar cost averaging is the act of systematically buying a consistent amount of shares.  This act averages out your cost basis and allows you to smooth out the price fluctuation.  That is another one of the hidden benefits that comes with investing in this club.  So, while Scottrade doesn’t fully reflect our gains on the main screen in a way that depicts our true profitability, the reality is that bivio is a more accurate depiction of your units which reflect the shares we purchased and when.

Congrats on your earnings and thank you for riding with us.  If you are still interested in joining our club but have not yet joined, feel free to email info@capitaltodd.com to get on board.

Be great!

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