Newcomers reap market's bounty in season of mellow fruitfulness

AS AUTUMN settles into the south-east of our great country, the fortunes of the market in recent weeks have turned like the leaves on the trees. Investors bumped up the benchmark index by 0.8 per cent in the past five days, led by the resources sector, which jumped 1.4 per cent, but held back by the banks, which finished fairly flat.

By InvestSMART · 6 May 2012

By InvestSMART ·
6 May 2012

Comments

There's a lot of daylight between our early leader, Barrisol director Marc Ryan, and the rest of the pack. Not to be harsh, but Marc's portfolio is a bit of a one-trick pony at the moment - and a pony that suffers from an acute case of upsies-downsies. That can make for a rough trot and we humbly suggest that Marc should enjoy his time at the top. Breathe the air, take a few photos of the view, that kind of thing.

The fortunes of our other racers were split between the old and new hands, with the newbies coming up trumps. Legal writer Georgina Dent beat the market handily but so did reader Mark Rice, leaving them neck and neck for second place. Georgina holds on to the silver-medal position by a few hundred bucks, thanks to Image Resources, which popped almost 20 per cent, with some back-up singing from Jumbuck Entertainment and Spotless Group. But Mark had the steadier-looking ship, recording strong performances almost across the board from a quality collection of stocks.

Still very much in the race is lawyer Louise Virgona. Woodside Petroleum was her best pick. And Louise is already a winner, taking out the round-one Most Awesome Stock Name of the Race Award with Maverick Drilling, which sounds like an invitation to poor OH&S practices to us. Bravo, Louise.

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Frequently Asked Questions about this Article…

What happened to the Australian benchmark index in the past five days?

The article says the benchmark index rose about 0.8% over the past five days, with the gains led by the resources sector and banks finishing fairly flat.

How did the resources sector perform and what did that mean for market gains?

Resources led the market’s bounce, jumping around 1.4% over the period, and were the main contributor to the benchmark index’s roughly 0.8% rise.

Which specific stocks drove the strong performances mentioned in the article?

Image Resources was a standout, popping almost 20%, with additional positive moves from Jumbuck Entertainment and Spotless Group noted as supportive contributors.

Who were the top-performing participants in the article’s investor race and what stood out about their choices?

Legal writer Georgina Dent and reader Mark Rice both beat the market, with Georgina narrowly holding second thanks largely to Image Resources. Mark delivered steadier, broad-based gains across a quality collection of stocks. Lawyer Louise Virgona also remained competitive with Woodside Petroleum cited as her best pick.

What does the article say about concentrated portfolios like the one held by Barrisol director Marc Ryan?

The article describes Marc Ryan’s portfolio as a ‘one-trick pony’ that suffers from ‘upsies-downsies,’ highlighting that a concentrated approach can produce more volatile, uneven results.

Did newcomers or experienced investors do better in this market period?

The article notes newcomers came up trumps this round: both new entrants and some readers outperformed other participants, with several newcomers beating the market alongside seasoned contributors.

Which companies were singled out as noteworthy stock picks in the article?

The article highlights Image Resources (nearly 20% gain), Jumbuck Entertainment, Spotless Group, Woodside Petroleum (as Louise Virgona’s top pick), and mentions Maverick Drilling in a different, lighthearted context.

What is the 'Most Awesome Stock Name' award mentioned and which company won it?

The 'Most Awesome Stock Name of the Race' is a lighthearted accolade mentioned in the article; lawyer Louise Virgona won that round with the name Maverick Drilling.