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During the first 9-years the Wish List had to contend with two of the most brutal bear markets in history, not to mention the worst economic downturn since the Great Depression.  We are happy to say that the Wish List performed remarkably – a trend we are focused on extending in this the Wish List’s tenth year. We are also focused on being prepared for when the bear returns…

With FallStreet.com we explore the macro: the big themes and investment trends that shape the financial world.  With the Wish List our concentration switches to the micro: the individual companies that may help positively shape an investment portfolio.  In short, although 2010 brings with it a great deal of uncertainty, there are also opportunities to be found.  

If you had invested in the Wish List on December 26, 1999 your portfolio would be up 194% over the last 9-years* - or 21.5% on an annualized basis. During the same period of time the S&P 500 has lost ground. Barring a complete meltdown in 2010, the Wish List is primed to mark a first highly successful decade.

As impressive as the aggregate performance of the Wish List has been, there is also a story to be told by the year-over-year performance numbers: from 2000 to 2009 the S&P 500 posted an annual decline on 3-separate occasions and on each occasion the Wish List has beat the benchmark. The difference between the Wish List and the S&P 500 during these three down years? An astonishing 123.46 percentage points!

A relatively new feature to the Wish List, 2010 will mark the fourth year where we cover 20-new ‘Prospect’ stocks.  While Wish List selections are companies that we believe are attractive to own at current prices, our ‘Prospects’ List contains companies that we believe could be worth owning at more attractive prices and/or after further investigation. As of November 30, 2009 our prospect was up by 52%.

The Wish List is about specific investment ideas, not about searching for the next big market shift. It is one thing to speculate about the inevitable demise of the U.S. dollar (we have, repeatedly), but quite another to effectively allocate capital based solely on such speculations. Investors looking for a get rich quick scheme may be well served to look elsewhere; we are of the mind that, first and foremost, the preservation of capital will be paramount in the years ahead.

Our focus on the balance sheet is one of the main reasons we believe that future and current Wish List holdings are unlikely to suffer the devastating crashes that have come to symbolize the markets over the last decade. As of November 30, 2009 5 of the current 8 Wish List stocks traded below tangible book value.

A subscription to the Wish List offers more than value orientated company coverage.  It also provides full access to FallStreet.com.  Serving the investment community since January 2000, the FallStreet Feed has proven an indispensable aggregator of essential investment news. The Feed, commentaries, and quarterly Wish List reports are read daily by individual investors and professional institutions from more than 30 different countries.

In an investment climate characterized by unprecedented government spending and central bank intervention, the value orientated investor must be prepared to search diligently for clear signs of undervaluation. The Wall Street Wish List endeavors to assist in that undertaking.

FallStreet.com ~  Preview The 2010 Wish List