Fortune's 40 Stocks to Retire On

[Dawg52]

Here is a link to the article. I think I will stick to my mutual funds though.

http://finance.yahoo.com/retirement/article/103131/Fortune-40:-Stocks-to-Retire-On

 

[cute fuzzy bunny]

I remember their list from about 7-8 years ago.

Tyco, worldcom, enron, etc.

You'd have enjoyed one heck of a retirement on those.

 

[terminator]

Thanks for posting. Since I own eight of them, I obviously like the list. It seems much better than most of the lists I see, although I definitely would not have called AIT or VFC "deep" value.

As for Enron, Tyco, and Worldcom . . .

Even with the market soaring to new heights this past spring, there are still ample reasons for caution. That makes this a perfect time to revisit the FORTUNE 40, the portfolio we've designed — and recalibrated annually — to help you thrive in markets both rocky and calm and build for retirement. Once again we're happy to report that our 40 favorites turned in a banner year, trouncing even the S&P's glitzy performance. Since its inception in 2002, the FORTUNE 40 has delivered an 18.3% annualized return, easily besting the S&P's 14.7%. It ain't broke — so we ain't fixin' it: FORTUNE is sticking with the strategy it's employed the past two years to update its portfolio and choose this year's stocks.

 

[unclemick]

Psssst - Budweiser (not Coke).

Just kidding. I only own about three of them UBS, VFC, and Aetna - a heck of a lot longer than since 2002.

Rookies!

If they don't do well in another ten years, I'll probably dump them.

I know, I know - like many I overtrade.

heh heh heh - my stocks have not ko'd my index funds in the last 15 yrs to the point I've got that villa in the Bahamas. May have to stay on tour like other Buffett( Jimmy).

 

[cute fuzzy bunny]

As for Enron, Tyco, and Worldcom . . .

AIG was also on the list IIRC.

I supposed its easy when your magazine throws out a dozen "picks" articles
a year. You wait 5 years and the time frame and picks that worked get the crowing. I dont hear them talking much about those late 90's picks I mentioned I think that was the "10 stocks to own forever" or "10 stocks for the long haul"...

 

[HFWR]

By long haul, maybe they meant prison...

 

[cute fuzzy bunny]

From 2000...fortunes "ten stocks to last the decade"
Broadcom
Charles Schwab
Enron
Genentech
Morgan Stanley
Nokia
Nortel Networks
Oracle
Univision
Viacom


"Ten stocks to let you retire when ready...".

Providing you're still ready to retire after the 80%+ losses.

 

[maddythebeagle]

Not sure about the "Bargain Growth" area...maybe a few years ago...

 

[eridanus]

I only own one, MO (Altria), that I've owned since it was beaten down by state lawsuits.

Is this article a contra-signal? Should I sell?

 

[ats5g]

I wonder what someone's after commissions and tax performance would be if they followed Fortune's picks and "recalibrated annually."

 

[terminator]

Commissions would be somewhere between $0 and $400 at any of the primary discount brokers assuming 100% turnover on the list. For most of us here that would be even less than the ER of a cheap index fund.

If we assumed 18.3% was linear and you were in a high enough tax bracket, then you'd give back 15% to the feds plus your state tax. Call it 20% in capital gains taxes and the 18.3% goes to 14.6% again assuming 100% turnover. (In reality the rate would be less than 20% in many cases and I'd also presume turnover isn't 100%.) Of course you eventually have to pay cap gain tax on the S&P's 14.7% as well so when you do that goes down quite a bit too, although like most I'm still a believer in compounding those unrealized gains rather than selling.

 

[cute fuzzy bunny]

Holding a long time makes sense, except these picks are usually generated in the context of contemporary conditions. You'll get gangbusters growth stocks when we're in a furious bull market...stodgy conservative slow moving but safe companies during full bear markets...etc.

Anyone able to find any past picks or anyone tracking these 'portfolios' for the period the magazine says they're appropriate for? I had a hell of a hard time finding any historic data on them at all, even from the magazine site.

 

[Nords]

From 2000...fortunes "ten stocks to last the decade"
Nortel Networks

That's referring to the time it takes them to recover a portion of their former value...

I only own one, MO (Altria), that I've owned since it was beaten down by state lawsuits.
Is this article a contra-signal? Should I sell?

Funny, the news that they're shutting down a NC tobacco factory & outsourcing cigarettes to Europe has restarted the rumors that they're going to spin off the tobacco business. With their yield I was beginning to wonder if they're worth buying.

 

[cute fuzzy bunny]

That's referring to the time it takes them to recover a portion of their former value...

good one.

Without looking, i'm betting that portfolio still hasnt recovered to even 75% of its value at the time of the article.

 

[FinanceDude]

Typical crap, but consider the source..........