I never understand why money magazine, cnbc, fortune, etc., do not call out so-called experts when their stock picks are completely off. I think it would be both entertaining and educational. So when I came across an old Fortune Magazine today and saw the article, 10 Best Stocks for 2011, I wanted to see how the so-called best picks were doing 4 months into the new year.
Fortune provides a reasoning for each stock, but I think that is less important for the post rather than just pure returns, however, as a group Fortune mentions,
Our selections this year are slanted toward commodities…protection against a falling dollar…some contrarian selections, including one house-related stock
Fortune Magazine’s Top 10 Stock Picks
- YTD Is up 1.05%
- YTD is up 6.82%
- YTD is up 11.04%
East West Bankcorp
- YTD is up 14.02%
- YTD down 33%
- To be (kind of) fair the article mentioned this pick as a boom or bust…
- YTD down 2.35%
- YTD is up 5.25%
Royal Caribbean Cruises
- YTD down 13.13%
Royal Dutch Shell
- YTD is up 9.79%
- YTD is up 13.39%
If you were to invest $100 in each of the 10 stocks your portfolio would have been up $12 or 1.2% (not counting fees). Not a great return considering the S&P is up over 6%.
I am not sure 4 months is a fair representation but I will absolutely come back to this post in a couple months to see how the “experts” are doing.