172 THE WARREN BUFFETT WAY
quarter’s, performance? They would probably have been canned, to
their clients’ profound loss.
MAKING CHANGES IN YOUR PORTFOLIO
Don’t be lulled into thinking that just because a focus portfolio lags the
stock market on a price basis from time to time, you are excused from
the ongoing responsibility of performance scrutiny. Granted, a focus in-
vestor should not become a slave to the stock market’s whims, but you
should always be acutely aware of all economic stirrings of the com-
panies in your portfolio. There will be times when buying something,
selling something else, is exactly the right thing to do.
Table 10.3 Lou Simpson, GEICO
Annual Percentage Change
GEICO
Year Equities (%) S&P 500 (%)
1980 23.7 32.3
1981 5.4 −5.0
1982 45.8 21.4
1983 36.0 22.4
1984 21.8 6.1
1985 45.8 31.6
1986 38.7 18.6
1987 −10.0 5.1
1988 30.0 16.6
1989 36.1 31.7
1990 −9.1 −3.1
1991 57.1 30.5
1992 10.7 7.6
1993 5.1 10.1
1994 13.3 1.3
1995 39.7 37.6
1996 29.2 37.6
Average Return 24.7 17.8
Standard Deviation 19.5 14.3
Minimum −10.0 −5.0
Maximum 57.1 37.6