December 12, 2011

Barrons Picks For 2011, Looking Back

I love reading Barron's which is a weekly publication from Dow Jones.  I look forward to it delivered to my house every Sunday.

Every year Barron's produces ten stock picks for the next year and the last issue gave us those picks along with the results for the picks from last year.

To their credit, Barron's doesn't shy away from their results (unlike your stockbroker).

Bottom line is that the picks for 2011 have produced a return of -6.9% compared to the S&P 500 return of -1.9% (as of 12/9/2011).

I bring this up because it shows yet again how hard it is to keep up with a simple index like the S&P 500.  Imagine how your stockbroker is faring (after charging you some hefty fees) if the smart guys at Barron's can't beat the index!


  1. I wonder how often these guys actually outperformed the market?

  2. And don't forget that all the transaction costs involved in buying and selling ten stocks.