The Barron's Roundtable is Legit
Here's an interesting article that I stumbled across today. In it the author analyzed the returns of the stock picks that we're made by participants in the annual Barron's Roundtable. I have always been a big fan of the series. I like anything in Barron's that contains realmstockmideas rather than opinions on politics and the macro situation. I particularly like Meryl Witmer's and Mario Gabelli's stock picks because they usually seem to have a special situation or value tilt to them.
Overall the panel has significantly outperformed the S&P. From 2002 through 2012 the Compound Annual Growth Rate, or CAGR for short, was an excellent 11.2%. It has been slightly less of late, from 2005 through 2012 the CAGR was 8.6%. This compares with annualized returns of 0.7% and 1.3% respectively for the S&P.
Surprisingly, as least to me, the best returns of any panel member belong to Marc Faber. I guess that I find it surprising because he always seems so bearish to me, but that actually really helped him when the markets got hammered in 2008. It probably doesn't help my opinion of him that he always recommends stuff that I can't buy on the exchanges here, grumble grumble ;).
Man looking back as Mario Gabelli's picks from just earlier this year I should have made a boat load of money. Alas I didn't launch my new imitative of buying more of the ideas that I find rather than just playing them and racking up points in CAPS until after I read the article. I am eating much more of my own cooking now, as you can see with the $ sign indicators that I put next to my real money CAPS picks
Anyhow, look at this list of special situations that Mario Gabelli brought to Barron's readers earlier this year:
Gaylord Entertainment (GET): The company converted into a REIT and returned over 68% in less than a year
Fortune Brands Home Security (FBS): The recent spinoff from Fortune Brands returned over 67% in less than a year.
Cincinnati Bell (CBB): This stodgy telecom announced plans to spinoff it's data enter subsidiary and soared over 66% in less than a year.
Beam: Another Fortune Brands split returned a solid 14%.
He had several more picks that we're off less than 10% on the year and one big dud, Navistar (NAV) that fell 45%. Side note...Carl Ichan is involved in NAV. Mi have learned to ignore his moves, he's been ice cold lately.
Are you kidding me? Man oh man tough Gabelli certainly had a heck of a good year picking winning special situations. Can you tell why I like him?
I could probably go on for hours analyzing the results...my new iPad is a very dangerous thing :), but I've got to get some sleep.
Enjoy the fascinating article everyone. Thanks for reading and Happy Holidays!
Barron's Roundtable 2012 Update