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Motley Fool Global Gains / GGM: Really Basic Questions


Subject:  Re: Why shpould I renew my subscription to the G Date:  4/15/2012  11:54 AM
Author:  TMFDoraemon Number:  834 of 847

Looks to me like the GG team has a poor record when it comes to recommendations...certainly not worth the investment to renew....this is what my analysis of the "Return vs S&P" showed:

It's rather unfortunate that we measure all of our Motley Fool services against the S&P 500. You would never see a diversified global fund measuring itself against a benchmark that it can only make limited investments in. We face the same issue in GG.

In reality we should be measured against the EFA or the ACWI. The EFA is on the scorecard, but we don't show returns against. (I track my recommendations against the EFA and around 65% - 70% of my recommendations have beat this benchmark).

I think the ACWI is a more appropriate benchmark as it has a mix of developed and emerging market equities in it, while the EFA is almost exclusively developed ex-US listings. Unfortunately, the ACWI didn't exist when we launched GG, but it is the benchmark I think is the most appropriate today.

The good news is I think the Fool is going to start measuring services against their most relevant benchmarks in the near future with the S&P 500 as a secondary measurement.


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