Reviewing Past Stock Picks from 2005 & 2006 / Dec. 16, 2006
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“Looking Backwards to see forwards- Stock Picks from 2005 and 2006, how good did they do?” / B. Morgan
Sources: Forbes, SmartMoney, Fortune, Morningstar & MSN Money.
I did some reviews of stock picks for 2005-6, now that it is getting close to the new year (2007), here is some of what I found in my research. -Brian Morgan
First Source: Forbes Magazine 2006
Investment= $80,000 Yield= $21,700 YTD%= 27.13%
Forbes Article called “Desert Island Stock Picks 2006”, by Marketocracy, author Matt Rand, January 10, 2006. Ten Stock Picks from Marketocracy users: RNWK, DEZ, NTO, NSS, COP, EGY, UNT, CLDN, USAK, AAPL. My Note: Using normal stock investing rules, like dumping a stock as it reaches 8% below your original purchase price, these are the YTD% winners from above: 46% RNWK DEZ – Merger with Yamana in March = ? 16% NTO NSS – paid $66 per share for merger in December - ? 25% COP 84% EGY -5% UNT 37% CLDN - 8% USAK (lost 39% YTD) 22% AAPL In my figures below I am tossing out DEZ and NSS as I don’t know the particulars about their mergers, and therefore have not investigated the yields or losses from these mergers. An investment of $10,000 for each of the stocks would have given you a gross yield of $101,700, or a profit of $21,700. An overall gross 27.13% gain for the year. Total invested = $80,000, gross profit/gain = $21,700.
The online magazine SmartMoney.com did an article in 2005 called “Where to invest 2005?” by Russell Pearlman and Evelyn Twitchell. Here are their stock picks for 2005. Symbol 2005 YTD% C -0.47 % GE -1.66 % BAX 3.05 % GSK 3.53 % DEO 0.70 % MCD 2.12 % CAT 9.72 % DE -6.23 % NSC 8.60 % PCAR -7.65 % ACN 1.92 % UNH 18.54 % $ Return from $10,000 9,953 9,834 10,350 10,353 10,070 10,212 10,972 9,377 10,860 9,235 10,192 11,854
Total Gross Returns = $ 123,262.00 Gross Gain = $3,262 Gross Gain = 2.68 % (2005 YTD)
Third Source: Fortune Magazine 2005
Investment= $100,000 Yield= $22,600 YTD%= 22.60%
“10 Rock Solid Stocks” written by Jon Birger & David Stires for Fortune Magazine Online. Article date: December 28, 2005, picks for 2006. Their Picks…$10,000 invested in each stock… Sym MO ADM BRKB C LLY HPQ KMI NSC PD WM 2006 YTD % 14 % 33 % 29 % 11 % -4 % 40 % 15 % 14 % 70 % 4% Gross $ Gain $11,400 $13,300 $12,900 $11,100 $9600 $14,000 $11,500 $11,400 $17,000 $10,400
Total Gross Return= $122,600 Gross Gain = $22,600 Gross Gain = 22.60% YTD (12/16/2006) (See next page)
Fourth Source: Morningstar “Fund Spy” 2005
Investment= $180,000 Yield= $7,469 YTD%= 4.15%
“Stock Picks from Nine Great Managers (2005)” by Russell Kinnel, September 13, 2005; Morningstar “Fund Spy” 2005. Sym CFIMX MMC JNJ LMVTX CFC MFOCX WMT WVALX FRE OAKVX AZO FMILX DNA FPPTX TASCX CCRN BOGLX CKR (MXO?) (ATTS?) Gross $ Gain -105.63 -364.70 -447.20 622.80 -707.80 1066.80 -1213.20 -532.4 -1065.40 -145.30 111.40 1202.80 7296 878.8 971.90 268.00 205.10 -573.50 ? ?
Total Invested = $180,000 Total Gross Return = $187,468.47 Total Gross Profit = $7,468.77 Total Gross Gain % = 4.15%
Fifth Source: MSN Money 2005
Investment= $110,000 Yield= $36,800 YTD%= 33.45%
“12 Picks from Top Newsletters for 2006” by Michael Brush, date 12-28-2005. MSN Money Online. Sym AEOS COP BR YTD% 111 25 ? Gross $ 11,100 2500 ?
Total Gross Yield with Principal = $146,800 Total Gross Gain = $36,800 Total Gross YTD % = 33.45% _________________________________________________
Where to find these authors online:
Matt Rand http://www.forbes.com/bow (Forbes Online) Jon Birger http://money.cnn.com/index.html (CNN Money Online, Search Name) David Stires http://money.cnn.com/index.html (CNN Money Online, Search His Name) Michael Brush http://moneycentral.msn.com/content/common/P78796.asp (MSN Money Online)
Here is my investment information resource online: http://www.esnips.com/web/Investments
My Notes: most financial advisors will tell you to expect a “prudent” 7.5% gain per year on investments in the stock market. Clearly there are potentials for greater gains in my opinion. I recommend reading the hardcopy and online website for Investors Business Daily, I am a new investor. Brian Morgan 12-15-2006