The Biggest Loser – Financial Update

andrew hallam

andrew hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (Wiley 2011) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use.

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6 Responses

  1. Update on the update:

    I wrote this post about a week ago. The latest numbers

    The super mutual fund portfolio +3.9%

    The Loser Stock Portfolio +0.7%

  2. I would bet the lousy stock portfolio will outperform the superstars over a 3 – 5 year period.

  3. @The Biz of Life

    Hey Biz, it's going to be interesting. Over those 3-5 years I should do a rough estimate of capital gains drag on each portfolio. I won't trade the lousy stocks, so they'll compound capital gains free, but the funds will have an annual tax drag of roughly 1.5% based on average turnover (using Bogle's data derived between 1994-2009). But even without the tax drag, you might be right!

  4. I agree, this going to be an interesting journey. Thanks for doing this update Andrew, love this contest!

    I see one of my selections has been a great dog this year: Goodyear. Maybe there is hope that the funds will beat the stocks (at least in year one) because of this slug? 🙂

    Longer term, 5 years in, I'm with Biz of Life.

    It would be interesting to know if any of your readers ever held these stocks?

    I thought about PFE at one time for my RRSP, but decided to go with ABT (Abbott) instead. Better history of dividends. I think they just paid out their 348th consecutive quarterly dividend. Not bad eh?


    Mark from My Own Advisor

  5. @Financial Cents

    Hey Mark,

    Wow! 348 consecutive quarterly dividend payouts! I wonder how many Pfizer has made in a row. They must be up there too. Ironically, I own a few of those "dog stocks". Obviously, unlike the people who chose them, I thought (or hoped!) that they'd make me loads of money over time. I bought Microsoft at $25 per share, and I own Pfizer at an average cost of roughly $16.50. I guess I made a reasonably big bet with Pfizer–having about $40K in the stock. So I hope the person who picked Pfizer ends up being wrong.

    It's a fun/bizarre sort of contest, isn't it? Trying to pick the worst portfolio we possibly can, and then wondering, as spectators, whether it's going to beat the best pros.

  6. I say throwing a dart at some stocks on a newspaper might do better than trying to read ratios and rationalize where the stock will go.

    The major reason I think for this is human nature. We're irrational, unpredictable and we like what we like without knowing why. (Crocs and UGGs anyone?)

    Me, I invest in dividend paying stocks, things I use on a daily basis (Starbucks, Apple, etc) which are companies I trust in because I am a customer, and some in countries I think are well positioned for the future like Brazil

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