The Origins of the AAII Model Shadow Stock Portfolio


AAII InvestoGraphic: Adjusting Overweight PositionsAAII InvestoGraphic: Adjusting Overweight Positions

Allowing a portfolio position to become oversized relative to your other holdings undermines the concept of diversification. This AAII InvestoGraphic offers guidance on how to pare down a position in a stock whose gains have caused it to have an outsized weighting relative to the other portfolio positions.

The Model Shadow Stock Portfolio’s Origins and Newest Stock

John Bajkowski

AAII’s Model Shadow Stock Portfolio is one of the most important benefits of membership. Only AAII members have access to this easy-to-manage, real-world stock portfolio that has outperformed the S&P 500 index by over six percentage points a year since its inception in 1993. This article discusses the origins of this micro-cap value portfolio, as well as recent changes to the portfolio.


Consensus Stocks: Passing the Most Screens

This First Cut article identifies 22 stocks that meet the criteria of several of the screening strategies AAII members have access to at the Stock Ideas area of


Analyzing Value: The Internal Growth Rate

Earnings and dividend growth rate assumptions are a primary factor in almost all fundamental models of common stock valuation. But estimating earnings growth potential is difficult. Arriving at a numerical estimate of growth for use in valuation requires the use of accounting data and a close look at the components of growth.

Our Member Question for this week is:

As an equity investor, are you more worried about rising inflation or slowing economic growth?


Vote to answer this week’s Special Question: The latest data shows that U.S. gross domestic product grew by 4.1% in the second quarter. How sustainable do you think the current economic expansion is? Why?

Last Week’s Results:

Poll results are as of 9 a.m. (Central) on Monday. 1,038 respondents.

AAII Survey: Slight Majority View Mergers in a Negative Light

Through the first half of 2018, the year is on pace to be the biggest in terms of mergers and acquisitions (M&A) activity. Our latest AAII survey asked our readers whether mergers were good for shareholders or bad for consumers. Historically, a jump in M&A activity is a precursor to an economic slowdown. The latest special question asked whether readers see this current M&A environment as a sign of a healthy economy or one poised for a downturn.

Stock Investing Strategies

One of the biggest difficulties for individuals interested in investing in stocks is getting started. This AAII e-book provides a general outline for analyzing stocks and walks through the process as it is practically applied to specific types of investment approaches. It first describes, in very broad terms, the basic process that is followed in fundamental analysis. It then goes into the various steps in more detail and shows how they can be adapted and practically applied to an individual’s specific approach using commonly found information sources.




The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


Leave a Reply

Your email address will not be published. Required fields are marked *