After years of profiting from specialized technology and internet concerns, our hypothetical investor returned to basics for 2004. The best-performing stock that election year was Sears Holdings (NASDAQ: SHLD), the nation's fourth-largest retailer, trailing in size only to Wal-Mart Stores (NYSE: WMT), Home Depot (NYSE: HD), and Kroger (NYSE: KR). At the beginning of the year, $43,270,538 was invested in 1,810,483 SHLD shares. 2004 was a pivotal year for Sears as well. In November, the Chicago-based retailing chain announced plans to scoop up the beleaguered Kmart brand. This news helped move even more buying power into Sears shares, which were already enjoying a steady uptrend throughout the year. Though the stock peaked in mid-November, it retained enough of its gains to emerge as the year's winner.
The retailing name ended 2004 at $98.95, up 314% for the year. The portfolio's value was now up to $179,147,269.
Next: Step 9: SanDisk (SNDK), 2005
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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