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Graham,

One of my favorite names -- my grandson is named Graham.

How many years would you give it before changing? What's your thought process?

Thanks,
Ears
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How many playmates entered the contest and how many had less than 14% returns?

I find comparisons to an index useful, because if I were to not invest in individual stocks or have no interest in following individual companies I own I would be an index investor. Primarily because I believe they out perform mutual funds which you then have to follow to some extent.

If I knew that a basket of 3 or 5 or 10 or 20 stocks would beat the indexes consistently and could do zero research on the companies then I would compare to those. I suppose I could do some minimal research and come up with a basket to which I compare my returns consistently for the next 30 years but I am not going to spend the time, however minimal, following and managing a portfolio just for the sake of comparison.
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IRdoc,

Thanks for your response!

10 Playboy models picked 5 stocks each. The contest ran for the full 2006 calendar year.
The average return for all 10 models was 8.6%. Half the models had gains and half had
losses. The biggest loser was Amy McCarthy -- sister of MTV's Jenny McCarthy -- down 37%.

At the end of 2006, should Deanna Brooks (up 43%) or Amy McCarthy (down 37%) change their
investing strategy or decision-making for 2007 based on the previous year's comparison to
the Index? Should Deanna stick with stock picking and Amy become an index investor? What
benefit is there to compare to the index for either of them? What are the pitfalls?

I don't pretend to have the answers. I'm interested in hearing your opinion.

Thanks,
Ears
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> At the end of 2006, should Deanna Brooks (up 43%) or Amy McCarthy (down 37%) change their
investing strategy or decision-making for 2007 based on the previous year's comparison to
the Index? Should Deanna stick with stock picking and Amy become an index investor?

I think a single data point isn't enough here. But if you are year after year consistently losing to an index, perhaps you just suck. Change your strategy one way or another.

Graham
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Graham,

One of my favorite names -- my grandson is named Graham.

How many years would you give it before changing? What's your thought process?

Thanks,
Ears
Print the post Back To Top