December 27, 2008
– Comments (2)
Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.
The advertisement on this sight boasts
>> 45% of our picks outperform the market. <<
This cracks me up! I mean why not just say
' 55% of our picks UNDERPERFORM the market'!!!
In all reality, if you taped the stock list from the investor's business dail to the cork board and had a bonobo throw a dart, to select 100 stocks. Over time, roughly 50% of those picks should outperform the market.
Isn't that advertising just saying....
'Hey, When you need to be certain your returns will underperform... ask us for stocks!!!'
And yet the portfolio is outperforming by 3.77% annualized. Why wouldn't you mention that as well?