In a crazy-good yr for shares, Robert Zedler, a 91-year-old retiree in Suffolk, Va., received Dorfman’s Three Inventory Derby with a 334% return.
Regardless of his age, Zedler’s picks in my stock-selection contest have been newish firms. His greatest gainer was Plug Energy Inc. (PLUG), a maker of hydrogen gas cells. That inventory soared 543%. Subsequent was Moderna Inc. (MRNA), the inventor of a number one covid vaccine, up 244%.
He additionally notched a 213% achieve in Livent Corp. (LTHM), a producer of lithium utilized in electric-car batteries.
It was a unprecedented yr. Of 34 contestants, a dozen achieved a return of 100% or extra. 4 scored above 200%.
In the course of the contest interval – April 21, 2020 to April 21, 2021 – the Commonplace & Poor’s 500 Index returned 55%, together with dividends. Twenty-two of the 34 contestants did higher than that, and the common contestant’s return was 79%.
The jumbo returns got here as a result of the market was depressed a yr in the past by the Covid-19 pandemic and related recession. The market bottomed in mid-March however was nonetheless depressed when the competition started.
The winner of Dorfman’s Three Inventory Derby will get a $100 restaurant present certificates, though Zedler selected to simply take the cash, saying he now not dines out a lot.
Would you prefer to strive your luck within the contest? The entry guidelines are easy, and are listed on the finish of this column.
Zedler, the winner, is retired from the agricultural chemical substances enterprise. Although he owned some aggressive shares final yr, Zedler is getting extra cautious now. “I’m elevating some money,” he says. “I’m maintaining my secure stuff, corresponding to utilities.”
What worries him mainly is the political environmental. He thinks the nation is shifting towards a “socialist bent.”
Zedler likes protection shares corresponding to Lockheed Martin Corp. (LMT), and metals and minerals shares corresponding to Rio Tinto Group (RIO) and BHP Group (BHP).
Second place went to Kimm Steven Nureck, who racked up a 298% return, adequate to win in most years. He runs Nureck Monetary Companies, an insurance coverage company in Laurel, Delaware.
Nureck owes his silver medal to a spectacular achieve in Callon Petroleum Co. (CPE), which rose 751%. It was one in every of a number of vitality shares that traders thought have been in peril of chapter a yr in the past, however which have come again dramatically. He additionally had a 128% achieve in WPX Vitality, which was acquired, and a small achieve in Yamana Gold Inc. (AUY).
Nureck credit President Trump with getting the economic system operating properly, and thinks the nice instances will final till early subsequent yr, when he thinks inflation will decelerate the economic system and the market.
Taking third place with a 215% return was John A. Byrnes, a knowledge engineer in Omaha, Nebraska. His large winner was Penn Nationwide Gaming Inc. (PENN), up 582%. Byrnes picked it at a time when traders felt the outlook for casinos couldn’t be worse, as a result of pandemic.
Within the coming yr, he thinks know-how shares will lead the market, as they’ve for many of the previous 5 years. Amongst his holdings are Nvidia Corp. (NVDA) and Alphabet Inc. (GOOGL).
You Can Play
To enter Dorfman’s Three-Inventory Derby, ship your three inventory picks, and your rationale for them, to me at firstname.lastname@example.org. In the event you desire, you’ll be able to mail them to John Dorfman, Dorfman Worth Investments, 101 Federal Avenue, Suite 1900, Boston MA 02110.
All entries ought to embrace:
1. Your identify
4. Electronic mail tackle
5. Cellphone numbers for work and residential.
6. The three shares you select. Causes are appreciated however not required.
In the event you end within the high three, I’ll wish to interview you on brief discover and presumably on a weekend, so the cellphone numbers are important.
You do not want to personal any of the shares you choose, however it’s tremendous in the event you do. Shares should be traded within the U.S., however not essentially domiciled right here.
Brief gross sales are permitted however not inspired, since I’ve
a separate short-selling contest. Alternate traded funds (ETFs) are permitted.
Entries should be postmarked or time-stamped by midnight Might 18. The subsequent contest will run from Might 18, 2021 by April 16, 2022. Your rating is the common complete return, together with dividends, in your three shares.
There isn’t any price to enter. The winner will obtain a $100 present certificates to the restaurant of her or his alternative.
Disclosure: I personal Alphabet personally and for many of my purchasers. I don’t personal the opposite shares talked about at this time.
John Dorfman is chairman of Dorfman Worth Investments LLC in Newton Higher Falls, Massachusetts, and a syndicated columnist. His agency or purchasers could personal or commerce securities mentioned on this column. He could be reached at email@example.com.
John Dorfman is chairman of Dorfman Worth Investments LLC in Newton Higher Falls, Mass., and a syndicated columnist. His agency or purchasers could personal or commerce securities mentioned on this column. He could be reached by way of e mail.