Newsletters 2009 Newsletters Quarterly Core Equity Review (10/21)
Wednesday, 21 October 2009 16:06
The S&P 500 Composite gained 14.98% during the 3rd quarter, increasing its year-to-date gain to 17.03% through the end of September. For comparison, Osher Van de Voorde core equities increased by 14.17% during the quarter and are now up 20.71% year-to-date through September. Let’s examine our top performers for the quarter and evaluate potential clues for future performance.
| Company | Ticker | Quarterly % Price Change | Economic Sector |
| Cadbury PLC | CBY | 48.9% | Consumer Staples |
| Cisco Systems | CSCO | 26.2% | Technology |
| Vanguard Precious Metals | VGPMX | 24.1% | Commodities |
| Emerson Electric | EMR | 23.7% | Industrials |
| Novartis ADRs | NVS | 23.5% | Health Care |
| 3M Company | MMM | 22.8% | Industrials |
| Vanguard Emerging Markets | VWO | 21.1% | Emerging Markets |
| Linear Technology | LLTC | 18.3% | Technology |
| United Technologies | UTX | 17.3% | Industrials |
| L-3 Communications | LLL | 15.8% | Industrials |
| Vodafone Group ADRs | VOD | 15.4% | Telecommunications |
| Berkshire Hathaway Class B | BRK.B | 14.8% | Financials |
| Gabelli Global Gold | GGN | 14.2% | Commodities |
| Nestle ADRs | NSRGY | 13.1% | Consumer Staples |
| CVS Caremark Corp. | CVS | 12.1% | Consumer Staples |
| Automatic Data Processing | ADP | 10.9% | Technology |
| Colgate Palmolive | CL | 7.8% | Consumer Staples |
| Diageo PLC ADRs | DEO | 7.4% | Consumer Staples |
| Johnson & Johnson | JNJ | 7.2% | Health Care |
| Pepsico Inc. | PEP | 6.7% | Consumer Staples |
| NYSE Euronext | NYX | 6.0% | Financials |
| Abbott Laboratories | ABT | 5.2% | Health Care |
| Teva Pharmaceuticals ADRs | TEVA | 2.5% | Health Care |
| Nokia Corp ADRs | NOK | 0.3% | Technology |
| Qualcomm Inc. | QCOM | -.05% | Technology |
| McDonald’s | MCD | -.07% | Consumer Discretionary |
| Oracle Corp | ORCL | -2.7% | Technology |
Clearly benefitting performance was Kraft’s offer to buy Cadbury and our decision to trim NOK and QCOM during the second quarter, while initiating positions in the commodity space through Vanguard Precious Metals and Gabelli Gold. With the exception of CBY and NVS, all positions that outperformed the market during the quarter are tied to a cyclical recovery, with all four positions in the industrials sector delivering outperformance.
Cadbury was sold after a sharp turn higher and McDonald’s purchased at a low during the quarter – we expect this to boost performance going forward. Additionally, we expect some of our more consistent, less cyclical investments in staples and health care to attract more interest as investors seek bargains in a market that has run very far in a short period of time.
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