Fortune Sellers - Show 6-2

Tuesday, December 20, 2011 4,632 views

We are approaching that time of year when stock pickers are out in mass giving their predictions for successful investments in 2012. What are the track records of some of the big name forecasters? Mark Hebner and Tom Cock discuss the futility of stock picking. Hebner talks about Step 3 in his book, Stock Picking,” by showing a chart entitled, “Fortune Magazine’s Ten Most Admired Companies in 2001 vs IFA Index Portfolios.” He analyzed Fortune’s “ten most admired companies” in 2001, then compared them to their performance in 2010. Nine of the ten stocks underperformed substantially in 2010, demonstrating that stock picking is a fruitless endeavor.

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