I noticed that about half of the Motley Fool Stocks 2007 recommendations are down significantly as we enter 2008, i.e., CHS, FCFS, PAYX, PHM, S, OAKLX. Which of these are still strong long-term investments? If so, they are even cheaper now than when they were originally recommended.
I have e-mailed in a comment about this to MF several times but it keeps bouncing back to me as misdirected or undeliverable. Here is what I said:I see the advertisements for Stocks 2008, and I have a comment about Stocks 2007. I compiled a list of the recommended stocks and tracked them throughout the year. I see a return, from the beginning of 2007 through the present, of -16%. I'm sure this could be off by some amount, since I only tracked stock prices. I'm sure there are some dividends not accounted for. I set up a dummy portfolio with $10,000 invested in each of 14 recommendations. (I'm not certain that I didn't miss one or more recommendations - there could have been more than 14; I don't remember if I left any out.) With commissions to buy of $6.95 on each, there is a total cost basis of $140,100.34. Value today is showing $117,240.11. I'm not writing to quibble over exact amounts, but I do not see that these recommendations, taken together, have worked out to be profitable investment ideas. Is there something important I have missed? Have others commented on this? It does not inspire confidence in MF recommendations, unfortunately, and I thought maybe there would be some comment, possibly of explanation, or maybe just a general comment returned to me.
What the devil makes you think that they were ever good investments? As of today, the portfolio is down 20%+, while SPY is down about 7% from Jan 07. 4 of the picks are down 60%+! TMF was totally blindsided by the sub-prime meltdown as evidenced by the presence of a home builder (PHM) and a finance company (FCFS) amongst their "gems" (the kind my cat buries in his litter box).Maybe we should try their 2008 picks?
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