A Great Company Can Be a Great Investment

A classic investment mistake is to confuse a great company with a great investment. It is a mistake because a company's well-known virtues are presumably already factored into the price of the company's stock. This study tested this "mistake" by looking at the stock performance o...

Ausführliche Beschreibung

Gespeichert in:

Bibliographische Detailangaben
Veröffentlicht in:	Financial analysts journal 2006-07, Vol.62 (4), p.86-93
Hauptverfasser:	Jeff Anderson, Smith, Gary
Format:	Artikel
Sprache:	eng
Schlagworte:	Automobile manufacturers Business structures Cash flow Efficient markets Enterprises Equity Investments Expected values Finance Financial investments Financial management Financial performance Financial portfolios Hypotheses Investment Investment advisors Investment companies Investment management companies Investment policy Investors Manycompanies Portfolio management Ratings & rankings Stock exchanges Stock prices Stocks Studies
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!

Beschreibung
Zusammenfassung:	A classic investment mistake is to confuse a great company with a great investment. It is a mistake because a company's well-known virtues are presumably already factored into the price of the company's stock. This study tested this "mistake" by looking at the stock performance of the companies identified each year by Fortune magazine as the most admired companies in the United States for 1983 through 2004. Surprisingly, a portfolio of these stocks outperformed the market by a substantial and statistically significant margin, which contradicts the efficient market hypothesis.
ISSN:	0015-198X 1938-3312
DOI:	10.2469/faj.v62.n4.4189