Peter - Excellent idea - I'll work with you to ensure the graph is posted
each week to the Forum - we can even look at putting up a special page for
it.
Thanks for expanding the concept and thanks again to Mike for initiating it
and taking the time to compile everyone's picks.
p.s. Peter - I noticed that you picked EBOS Group, which was also one of my
picks for the year. I'd be interested in hearing why you chose this often
over-looked company.
----- Original Message -----
Sent: Friday, January 19, 2001 7:21
AM
Subject: [sharechat] The Peoples Pick -
outperforming the market .....
Mike - great effort in putting together
the beat the broker competition.
Good idea in putting together the
Peoples Pick - being the most popular selections.
That prompted me to maybe take it bit further and
create the Sharechat Growth Selection Index - the SGS.
From the hypothesis that Sharechat contributers are a
learned lot who believe that they can outperform the market then a selection
of shares selected by this group of people will outperform the market. The
combined wisdom of 61 Sharechat contributors who put selections forward is
immense.
Proof is the outperformance of these selections
against the NZSE40. How Peoples Pick performs in the competition will show
this but I was thinking of monitoring progress more regularly.
However (bored waiting for a plane) taking it a bit
further I have created a model to track this SGS index. The stocks
involved are FFS, TEL, FRU, ITC and THL. Whereas the competition has equal
weighting for each in the portfolio I have applied a weighting relative to the
number of times the stock was selected (ie FFS has a 28% weighting - being 22
selections out of 69 selections of these five stocks). I have indexed the SGS
and the NZSE40 to 1000 as at Jan 12th. Easy done and I'll see if Ben can get a
graph posted weekly so we can monitor the progress of our combined
wisdom.
Once the world is aware how successful the Sharechat
Growth Selection is everybody will want to get on the bandwagon. Even next
year the Herald will want to include it in their picks for 2001.
Fantastic performance to date by the SGS -
last four days up 6.5% while NZSE up 2.2%
Dumb idea or worth proceeding?
I am going to continue measuring as part of a case
study on the subject that teams generally produce better results than
individuals. Sorry Mike - but the competition has provided a good sample for
such for an exercise.
Peter
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