Comments on: How I beat the S&P 500 five years running and why you should (and should not) be impressed http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tom Madell, PhD http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-6305 Tom Madell, PhD Thu, 21 Feb 2008 08:37:43 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-6305 Nice article. Well it's good to beat the S&P 500 in a rising market, but what about during the years the S&P was falling? I haved published a free newsletter since 2000 with Model Portfolios. Thus far, since I began, I have published 29 quarterly Stock Model Portfolios. At the close of 2007, 26 out of the 29 have outperformed the S&P 500. These results were achieved during both bear and bull markets. The average outperformance 1 year after publication was +4.03%. Better still, 5 years after publication, the Portfolios continued their outperformance, averaging +5.18% better than the 500 Index per year. (Eg. After 5 years, Portfolios have gained a total of more than 25% more than the gains in the S&P 500.) Obviously, I can't guarantee this outperformance will continue but it is encouraging since I base my Portfolio selection on a variety of research factors. Details are available at my website, Mutual Fund Research Newsletter, which contains many articles on my strategies for investing. I recently added a blog for dealing with current issues that investors are concerned about. Nice article. Well it’s good to beat the S&P 500 in a rising market, but what about during the years the S&P was falling?

I haved published a free newsletter since 2000 with Model Portfolios. Thus far, since I began, I have published 29 quarterly Stock
Model Portfolios. At the close of 2007, 26 out of the 29 have outperformed the S&P 500. These results were achieved during both bear and bull markets. The average outperformance 1 year after publication was +4.03%. Better still, 5 years after publication, the Portfolios continued their outperformance, averaging +5.18% better than the 500 Index per year. (Eg. After 5 years, Portfolios have gained a total of more than 25% more than the gains in the S&P 500.)

Obviously, I can’t guarantee this outperformance will continue but it is encouraging since I base my Portfolio selection on a variety of research factors.

Details are available at my website, Mutual Fund Research Newsletter, which contains many articles on my strategies for investing. I recently added a blog for dealing with current issues that investors are concerned about.

]]> By: The Investment Scientist http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-4795 The Investment Scientist Fri, 01 Feb 2008 18:02:13 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-4795 DR, I am partially impressed. Your excellent return is the result of some lucks (emerging market, falling dollar and REIT) and some very wise choices (value oriented funds and Vanguard). I managed to beat the S&P 500 as well, with <a href="http://www.mzcap.com" rel="nofollow">disciplined small cap value investing</a>. DR,

I am partially impressed. Your excellent return is the result of some lucks (emerging market, falling dollar and REIT) and some very wise choices (value oriented funds and Vanguard). I managed to beat the S&P 500 as well, with disciplined small cap value investing.

]]> By: Dividends4Life http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-4145 Dividends4Life Mon, 21 Jan 2008 18:27:57 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-4145 Excellent post! I love to read articles where someone has successfully beat the S&P. Thanks for sharing it. I plan to include your article in my weekly carnival review this Friday. Best Wishes, D4L Excellent post! I love to read articles where someone has successfully beat the S&P. Thanks for sharing it. I plan to include your article in my weekly carnival review this Friday.

Best Wishes,
D4L

]]> By: DR http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-3789 DR Thu, 20 Dec 2007 22:58:08 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-3789 J. Michael, I agree. My goal is to keep total portfolio expenses to .5%. Bill Miller of Legg Mason fame had beat the S&P for 10 years running. I owned LMVTX for a number of years. This year he's about 10% behind. To your point, managers can beat the market for a time, but not forever. J. Michael, I agree. My goal is to keep total portfolio expenses to .5%. Bill Miller of Legg Mason fame had beat the S&P for 10 years running. I owned LMVTX for a number of years. This year he’s about 10% behind. To your point, managers can beat the market for a time, but not forever.

]]> By: J. Michael Steele http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-3788 J. Michael Steele Thu, 20 Dec 2007 21:06:48 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-3788 It is certainly a good idea to minimize fees (and taxes) but it's really no easier to choose an a money manager (or mutual fund) than it is to pick stocks that will outperform your benchmark. Money managers who are past winners are no more likely to repeat than stocks are. Pop a cork, enjoy those first four years, and be glad number five was not a real stinker. Of course people who pay loads or buy funs with expense rations much bigger than 0.5% are just giving money away. It is certainly a good idea to minimize fees (and taxes) but it’s really no easier to choose an a money manager (or mutual fund) than it is to pick stocks that will outperform your benchmark. Money managers who are past winners are no more likely to repeat than stocks are. Pop a cork, enjoy those first four years, and be glad number five was not a real stinker.

Of course people who pay loads or buy funs with expense rations much bigger than 0.5% are just giving money away.

]]> By: hank http://www.doughroller.net/investing/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/comment-page-1/#comment-3719 hank Sat, 15 Dec 2007 19:55:03 +0000 http://www.doughroller.net/2007/12/14/how-ive-beat-the-sp-500-five-years-running-and-why-you-should-and-should-not-be-impressed/#comment-3719 I'm impressed. :) It really isn't rocket science to cook something like that up, but the "advisors" of the world have found a way to make a living getting people into the mindset that "it is faaaaaaar too difficult to do it on your own. You need someone who has mastered the waters". Hell, nobody has "mastered" the waters, but they ARE salesmen I guess... Good post... I’m impressed. :) It really isn’t rocket science to cook something like that up, but the “advisors” of the world have found a way to make a living getting people into the mindset that “it is faaaaaaar too difficult to do it on your own. You need someone who has mastered the waters”. Hell, nobody has “mastered” the waters, but they ARE salesmen I guess… Good post…

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