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
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...