Checking up on the Stock Pickers
by William Grosso
Related link: http://www.forbes.com/global/2002/0708/064.html
Over the past year, I've lost a lot of money (by my standards, at least). I was invested fairly heavy in technology. And even though I managed to avoid the dot-com flameouts (all of my investments are still in business), it's pretty clearly been a bad fiscal year for me.
I'm still investing though. It's a long term game, and I think that, in the long term, it's good to own stock.
But I was curious. My personal investments are a combination of "invest in products you understand" and Benjamin Graham's basic precepts. Maybe this is a bad way to pick stocks? Maybe professionals do better?
Among the professionals, no-one seems more confident, on a month-to-month basis, than Kenneth Fisher, who writes for Forbes magazine and manages a fairly large investment fund. So I picked an article of his at random from the pile of old issues of Forbes by my bedside (it's also available on-line from
here) and checked up on his recommendations.
His recommendations for the month were: Aegon (AEG) at $19, Credit Suisse (CSR) at $34, Telstra (TLS) at $13, TDC (TLD) at $13, Ford (F) at $17, and Six Continents (SXC) at $11.
The one he liked the most was Ford. "A real steal."
Currently, they're trading at: Aegon (AEG) at $13.48, Credit Suisse (CSR) at $22.06, Telstra (TLS) at $13.64, TDC (TLD) at $12.55, Ford (F) at $10.20, and Six Continents (SXC) at $9.32.
He's not doing so good either.
Have you performance-checked a stock picker lately?
A Random Walk
Check out "A Random Walk Down Wall Street" by Burton Gordon Malkiel.