Investment Recap Fourth Quarter 2005

The year 2005 was a terrific year for “Winslow” stocks. We had an easy time beating the 4.9% return of the S&P500 and the 6.1% return of the Russell 3000. Our results were a function of good sector bets (i.e. being overweighted in energy); in addition, it was a market that rewarded good stock picking.
 
Looking ahead at 2006, the two “big bugaboos” of high energy prices and Federal Reserve tightening are likely to ameliorate over the coming weeks. Valuations are reasonable, and we, therefore, expect a decent market year. January is starting out better than last year. The market gains are already close to what was achieved by the averages for the entire twelve months of 2005. There is a saying, “As January goes, so goes the rest of the year.”