In search of information content

portfolio performance of The 100 Best Stocks to Own in America

Authors

  • Randy I. Anderson Department of Finance, Florida International University
  • Anthony L. Loviscek Department of Finance and Legal Studies, Seton Hall University

DOI:

https://doi.org/10.61190/fsr.v14i2.4819

Keywords:

100 stocks, Portfolio, Information content

Abstract

Now in its seventh edition, The 1OO Best Stocks to Own in America is an enduring and lucid reference for the active individual investor. Through the sixth edition, it had reportedly sold over 300,000 copies, indicating that it might contain information content, or stocks that can beat a broad market index on a risk-adjusted basis. Does it? As a response, we compare the out-of-sample Sharpe ratios of 30 portfolios constructed from the first six editions of Walden's rankings to the Sharpe ratios of the S&P 500. We find some evidence of information content and suggest that the individual investor focus on the top five stocks.

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Published

2005-06-30

Issue

Vol. 14 No. 2 (2005): FSR Summer 2005

Section

New Original Submission

License

Copyright (c) 2005 Academy of Financial Services

Creative Commons License

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How to Cite

In search of information content: portfolio performance of The 100 Best Stocks to Own in America. (2005). Financial Services Review, 14(2), 97-109. https://doi.org/10.61190/fsr.v14i2.4819