Welcome!

News Feed Item

Winans Investments: Corporate Blue Bloods - Legacy Stocks Prosper Through 44 years of Bull & Bear Markets!

NOVATO, Calif., March 12, 2014 /PRNewswire/ -- Every bull market produces a lot of investment hype around buying the "hot stocks" that eventually led investors off a financial cliff during the next bear market.

During the 1970's, it was the "Nifty Fifty".

During the 1990's, it was the "New Economy" technology stocks.

During the 2000's, it was global investing in the "BRIC" countries.

Today, it's about exotic exchange traded funds and social networking stocks.

While all these investment themes sound wonderful, the basic problem is that Wall Street's idea of conducting "long-term" research to validate these theories usually covered the previous 5 to 10 years.

While multi-decade investment research can be a valuable investment tool, analyzing history isn't as easy as it seems for two big reasons:

1.

It's difficult to retrieve investment data beyond 1980 using popular financial data services (not to mention that much of the older data is incorrect and needs to be audited).



2.

There are many statistical flaws inherent in conventional stock market indices due to their frequent changes in the underlying stocks and data weighting methods.

Respected market researcher Ken Winans tackled the problem by developing an unweighted composite of 110 senior common stocks from diverse industry sectors. Most of the companies have been in operation since 1897 (on average), and most have been continuously traded on the New York Stock Exchange (NYSE) since 1970.

This index is called Winans Legacy Stock Index (symbol: WILSI).

Since the WILSI's underlying components remain unchanged over a 44-year timeframe, this provides a baseline to compare today's financial conditions to past stock market cycles using the exact same securities.

This index also paints a very different picture than what many investors believe about boring, "old economy" stocks.

Average Annual Returns 1970-2013



WILSI

S&P 500 Index

Since 1970

11.8%

11.7%

Since 1974

12.0%

12.3%

Since 1979

12.4%

12.9%

Since 1984

11.1%

12.2%

Since 1989

11.0%

11.6%

Since 1994

10.2%

10.8%

Since 1999

7.4%

6.4%

Since 2004

9.7%

8.9%

Since 2009

16.9%

17.7%







Major Bear Markets


1973-74

WILSI (27.4%) vs. S&P (37.3%)

2000-02

WILSI (13.1%) vs. S&P (42.9%)

2008-09

WILSI (36.4%) vs. S&P (35.4%)

As the table shows, common stocks of older companies (i.e., corporate blue bloods) have performed well over multiple time periods and significantly outperform the overall stock market during most bear markets.

"Successful investing is a marathon, not a sprint. Most investors should consider investing in time-tested corporate blue bloods rather than a "hot stock" that will require an exit strategy when the bull market ends." says Ken Winans of Winans Investments and author of "Investment Atlas."

FYI: For those investors still worried about missing out on future global economic expansion, the corporate blue bloods gained 51% of their revenues from foreign sales in 2013!

More information on the Winans Investments Capital Management & Research can be found at http://www.winansintl.com

SOURCE Winans Investments

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, discussed how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a practic...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with budd...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.