The basket is up 55% in that time (two losers and three gainers, with the largest loss, -37%, and the greatest gain, +139% [USAP, which went from $5.86 to $14.00]). This represents a compound annual appreciation of 24.5%. By comparison, in the same 11/21/02-11/17/04 period, the S&P 500 Index is up 27%, which works out to a compound average annual appreciation of 12.7%.
Today, the overall equity market is significantly higher than in late 2002. There are fewer excellent bargains available. As a result, to obtain a potential portfolio like the one suggested then, I have had to accept somewhat higher price to book ratios. The values in the new portfolio are not quite as good (average book value 40% above the average share price), and so the appreciation is not likely to have as positive a result as with the earlier stocks. Still, the value of the new portfolio is substantially more favorable than that for the market overall. Thus, I'd be surprised if in the next couple years the new securities do not beat the S&P 500 Index once again. However, as always, past results do not guarantee future returns.