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The Year-End Results – Auggie Versus The Stock Pickers

It was a bouncy and uncomfortable year for investors.  With nice movement in the fourth quarter, the Dow managed to end the year up 5.5%, but the tech-heavy NASDAQ had its first losing year since 2008, with a decline of 1.8% for the year.

Exactly one year ago The Bizzy Life challenged the experts to a little stock picking contest.  Representing The Bizzy Life was comic Auggie Smith, who has zero investing experience, and chose his stocks by literally throwing darts at the Wall Street Journal stock page.  We put Auggie’s results up against Kiplinger Magazine’s “Top Stocks for 2011”, and our third contender is the low cost Vanguard World Fund.  Here is how you would have done if you had invested $10,000 with each of our experts:

  1. Auggie Smith can now add “investment expert” to his comedic introduction, as he beat out both Kiplingers and the experts at Vanguard.  A $10,000 investment in Augs picks would now be worth $10,135.00.  Seven of Auggie’s ten stocks increased in value, with Centerpoint and IBM leading the pack.
  2. Kiplinger Magazine’s Ten Stocks for 2011 did not fare so well, coming in second place at a value of $9526.00.  Only four of the ten stocks increased in value, led by Caribou Coffee and United Rentals.
  3. Although the Vanguard World Fund was in second place most of the year, it was hurt by the overseas economic turbulence late in the year, coming in at $9026.00.

In retrospect, I should not have chosen the World Fund for this competition, as all the other stocks were domestic.  A simple Dow index fund would have won the competition by a few hundred dollars.

Watch for our new 2012 competition in the next week when we will again challenge the experts!

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