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Can you beat the market by imitating Jim Cramer’s favorite stock picks? According to his recent track record the answer is: “Yes, you can!” Let’s take a look. Words: 404
So says the Insider Monkey (www.insidermonkey.com/blog/) in an article*** which Lorimer Wilson, editor of www.munKNEE.com , has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. The article goes on to say:
During the last 30 days his favorite buy recommendations (based on number of mentioned days) on Mad Money were as follows:
| Company | No. Of Times Picked | First Date* | Return (%)** | Excess Return (%) (wrt S&P500) |
| Apple (AAPL) | 5 | 05/18/10 | 32.07% | 11.22% |
| Goldcorp (GG) | 5 | 02/18/11 | 7.72% | 8.29% |
| Hess Corporation (HES) | 4 | 11/29/10 | 6.65% | -6.21% |
| Caterpillar (CAT) | 3 | 08/10/10 | 50.70% | 30.40% |
| DuPont (DD) | 3 | 05/25/10 | 54.20% | 28.21% |
| Herbalife (HLF) | 3 | 05/25/10 | 139.52% | 113.53% |
| Netflix (NFLX) | 3 | 03/14/11 | 17.84% | 14.98% |
| Potash (POT) | 3 | 11/16/10 | 16.67% | 2.87% |
| Alcoa (AA) | 2 | 10/11/10 | 30.86% | 15.58% |
| Barrick Gold (ABX) | 2 | 01/19/11 | -5.09% | -9.38% |
| Anadarko Petroleum (APC) | 2 | 12/02/10 | 5.29% | -4.43% |
| Airgas (ARG) | 2 | 12/01/10 | 9.01% | -2.12% |
| Baidu.com (BIDU) | 2 | 05/19/10 | 82.19% | 60.64% |
| Peabody Energy (BTU) | 2 | 09/10/10 | 28.41% | 7.14% |
| Buffalo Wild Wings (BWLD) | 2 | 02/11/11 | 14.19% | 13.69% |
| Chipotle Mexican Grill (CMG) | 2 | 04/29/11 | 2.21% | 4.59% |
| Deckers Outdoor (DECK) | 2 | 06/03/10 | 72.59% | 49.89% |
| Domino’s Pizza (DPZ) | 2 | 10/12/10 | 61.33% | 46.40% |
| Fossil (FOSL) | 2 | 04/04/11 | 10.80% | 10.85% |
| SPDR Gold Shares (GLD) | 2 | 05/17/10 | 21.79% | 2.58% |
| Halliburton (HAL) | 2 | 06/25/10 | 73.73% | 48.40% |
| Lowes (LOW) | 2 | 06/23/10 | 15.91% | -7.86% |
| Macy’s (M) | 2 | 10/20/10 | 25.60% | 11.52% |
| National Grid (NGG) | 2 | 06/25/10 | 34.35% | 9.02% |
| Panera Bread (PNRA) | 2 | 05/04/11 | 2.86% | 4.08% |
| Schlumberger (SLB) | 2 | 06/01/10 | 60.31% | 33.99% |
| SodaStream (SODA) | 2 | 04/25/11 | -8.29% | -7.95% |
| Tupperware (TUP) | 2 | 05/25/10 | 55.10% | 29.12% |
| Average | 32.80% | 18.54% | ||
* Represents latest recommendation change from sell to buy. The study interval includes only past one year. ** Includes the duration from first date till May 16, 2011.
Jim Cramer’s favorite stocks during the last 30 days were Apple and Goldcorp. He repeated his buy recommendation of each of those stocks five times during the last 30 days.
Conclusion
[As the above table illustrates] 22 out of his 28 favorite stocks… beat the market…returning 32.8% on average [from the time they were] recommended… [and out-] performaning the S&P 500 by 18.54%. [Now that is winning BIG!][Yes, indeed,] we believe investors can beat the market by imitating Jim Cramer’s favorite stock picks.
***http://seekingalpha.com/article/271008-cramer-s-28-favorite-stocks?source=email_watchlist (Jim Cramer is the host of CNBC’s “Mad Money” show and the chairman of TheStreet.com. In 1987 Cramer started his own hedge fund and returned an average of 24% per year between 1987 and 2001. Cramer also authored six money management books.)
Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
Stocks
Buffett is a man of a very typical investment approach. When the stock market drops and prices fall Buffett buys securities of companies.
Thanks for this excellent list of shares