There was an interesting Warren Buffett interview last week where the “Oracle of Omaha” gave a handful of very wise advice to investors. However, we couldn’t help but notice, he seemed to make a glaring fundamental mistake. This article reviews Buffett’s good advice, postulates a couple reasons why he could have made his glaring fundamental mistake, and we finally offer a smart way (a specific security) to take advantage of Buffett’s good advice without making the same big mistake.
New Trades and Year-End Performance
We finished the last trading-day of 2016 with two new purchases. We also finished the full-year with all three strategies (Income Equity, Disciplined Growth, and Smart Beta) beating the S&P 500. The two trades were in the Disciplined Growth and Smart Beta (ETF-only) portfolios, and we detail them in this report. We also believe all three strategies are well-positioned for continued out-performance in 2017. Please login to review the new trades and all of our current holdings.
5 Exchange Traded Funds (ETFs) for 2017
The following table shows the performance of 40 sector and industry ETFs sorted by year-to-date total returns. And not surprisingly, given the high political uncertainty this year, health care (and biopharmaceuticals, in particular) have performed very poorly, especially versus the S&P 500 which is up 13% this year. This article details five specific ETFs (across markets, sectors and industries) that we believe are particularly attractive headed into 2017...