Rules:

Buy or sell only on the first market day of the month; 12.95 commission per transaction and only whole number shares of stocks listed on the S&P100 or Dow Jones Composite (Industrial, Transportation or Utilities).  Sales price is lower of median or close, purchase price is higher of median or close for the day.  Uninvested cash gets 1/3% interest each month.  Invest additional $4000 at start of each year (like IRA).  Dividends paid as cash last day of month.

Results for 2007:

1. Andrew (33 DELL, 12 GOOG, 90 MCD, 84 WMT): 24.86%

2. Winnie (40 COP, 140 CSCO, 49 FE, 6 GOOG, 24 TGT): 20.84%



3. Josiah (8 AAPL bought after it was listed in S&P 100, 40 BA, 40 CSCO, 78 GM, 9 GOOG, 40 MSFT, 25 PEP): 17.5%

4. DJ Utilities: 14.86%

5. Gilbert (24 BA, 119 CSCO, 33 CVX, 9 GOOG, 100 HAL (bought after selling the underpoerforming FDX): 14.59%

6. DJ Industrials: 4.56%

7: S&P 100: 1.06%

8. DJ Transportation: -3.87%

Except for the good performance of the DJ Utilities, it was a benchmark-crushing year for the Chan family of funds, primarily powered by having Google being 17-35% of each portfolio and going up almost 50% on the year.  Andrew won by not only having the most Google but also having the #2 stock Mc Donalds (up 32%)  Oil prices helped Chevron (32%) for Gilbert and Conoco Phillips (+29%) for Winnie.  The only big losers were GM for Josiah (-17%) and 11 months of Fed Ex for Gilbert (-15%).  Winnie would probably have finished first had she not kept large amounts of their funds in cash, given her focus and lack of losers.

2008 looks like it is off to a bad start but we'll see how we do against the indices again, if we've just been lucky the past two years.