This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

My 8-Year Old's Portfolio is Kicking Your Portfolio's...

Stocks in this article: MSG VIAB KFT P AAPL

NEW YORK ( TheStreet) -- In early June, when TheStreet published My 8-Year-Old's Portfolio Will Kick Your Portfolio's..., I promised I would update readers on the status of my child's custodial account from time to time. I am pleased to report that she outperforms the market.

As of the June update (we made our initial investment on April 3), the portfolio was up 1%. Here's where things stand, as of Friday's close: MSG Chart MSG data by YCharts

The portfolio's three stocks -- Madison Square Garden (MSG), Viacom (VIAB) and Kraft (KFT) -- outperform the SPDR Dow Jones Industrial Average ETF (DIA), the SPDR S&P 500 Index ETF (SPY) and the PowerShares QQQ Trust (QQQ), which tracks the Nasdaq-100 index.

Not only has the portfolio outperformed the broader market, but two stocks, MSG and KFT, hit 52-week highs on Friday. VIAB sits just shy of the 52-week high it hit on August 17.

Taken together, the stocks have returned 9.8% since the portfolio's inception. That beats the return of Bill Gross's Pimco Total Return Fund as well as Fidelity Contrafund by considerable margins.

So, what's driving this thing to such excellent performance?

We used the Peter Lynch method of investing, but -- and this is key -- we thought critically about our choices. Who knows where this will go from here, but, as it stands, together, my daughter and I made well-thought-out moves.

First, we didn't flub the "buy-what-you-know" strategy, as so many investors do.

When we started brainstorming stocks, my daughter suggested the two she knows best: Apple (AAPL) and Pandora (P). She uses several Apple products at home and school. And ever since I introduced her to Pandora (putting in, by mistake, the wrong date of birth so she could have her own account), she has been a regular user.

While both AAPL and P would have been solid choices, regardless of their near-term underperformance relative to MSG, VIAB and KFT, we went with stocks that I think better suit a somewhat conservative portfolio with a minimum 10-year time horizon.

From a pure numbers standpoint, in the period since April 3, MSG, VIAB and KFT have outperformed both AAPL and P, which are up about 5% and down about 5% respectively, as of Friday's close. (Though, on Apple's legal punkslap of Samsung, we'll have to see how much of Friday's after-hours gains it hangs onto Monday).

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs