2021 Penultimate Profit Prospect Returns

On January 2, 2021, we said the following:

“For the year 2021, we have identified Cisco Systems (CSCO) as the Penultimate Profit Prospect.  Additionally, Apple Inc. (AAPL) is our alternative stock.  Considering how much Apple seems over priced and over owned, we are very curious to see the performance outcome of this stock.”

Below is the performance of Cisco Systems (CSCO) and Apple Inc. (AAPL) in 2021.

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Initially, we thought that Apple would fall far short of the mark given the 2020 performance and the very slow start to the year.  Then, as the mid-November kicked in, Apple Inc. started to show signs of life just as Cisco Systems was rebounding.

Relative to all the stocks that are part of the Dow Jones Industrial Average, Cisco Systems (PPP) and Apple Inc. (our alternative) did well in 2021.

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According to Michael B. O’Higgins, the Penultimate Profit Prospects had a cumulative total return of +43,177% from 1973 to 1998.  This is in contrasted with the Dow Jones Industrial Average cumulative total return of +2,408% over the same period.

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*See Michael B. O’Higgins reference to the Penultimate Profit Prospect (PPP) in his book Beating the Dow.

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