Saturday, October 18, 2008

Listening To Experts Can Hurt

Every year Forbes magazine sponsors an *investment cruise*. I am sure it costs over $10,000 per couple.

Then of course, the additional cost will vary depending on how much stock you bought from expert recommendations.

The table above gives a 1.5 year summary of the *expert picks* performance from the 2007 cruise. Only one stock is currently higher! And most of them are down huge.

I can't find the quote right now, but if memory serves me, CROX - down 90% - was the recommendation the *experts* universally agreed upon.


Oh yeah, the *experts* also recommended GMAC bonds! Here's a recent article on their *25 cents on the dollar* performance.


Though in fairness to the experts - there's no way they could have known Josh Weintraub was going to come aboard...

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