Intelligent Investor's 2017 Recommendations Report

We've released the latest version of our Recommendations Report, which reveals another year of good outperformance. 

By ·
19 Nov 2017

There aren't many professions where a 40% failure rate would be considered best in class – but that's what you get in investing, where the world's best investors only enjoy success from about six in 10 of their stock picks.

At Intelligent Investor we also aren't immune from the odd disaster. Yet for every GBST (ASX:GBT), Timbercorp or Miller's Retail, there's a Flight Centre (ASX:FLT), South32 (ASX:S32), Hansen (ASX:HSN) or RHG.

Since 2001, the performance of every Buy and Speculative Buy recommendation made by the analysts at Intelligent Investor – 510 in total – has been recorded and released to members in our annual Recommendations Report.

Independently verified by Big Four accounting firm Ernst & Young, the 2017 Recommendations Report has just been released.

So how have we performed over the past 16 years?

Well, the latest report shows that our 393 Buy recommendations – which the majority of members would invest in – have returned 15.2% per year on average (including franking credits). This is comfortably above the return of the ASX 200 Total Return index of 9.1% per year (also adjusted to include franking credits).

Our riskier Speculative Buy recommendations have returned 8.3% per year which, while respectable, nevertheless trails the return of the index.

Overall, our total of 510 Buy and Speculative Buy recommendations have returned 14.1% per year (again including franking credits) to 30 June 2017, still comfortably above the 9.1% per year returned by the ASX 200 Total Return index.

A necessary caveat

However, we need to note an important caveat. It would be almost impossible for members to invest in every Buy and Speculative recommendation we make, and at the same price at which we make them.

Moreover, the Recommendations Report assumes an equal amount is invested in every recommendation, but the realities of portfolio management and diversification mean that different recommendations will have different weightings in members' portfolios.

So, while we believe the Recommendations Report illustrates the value that a membership of Intelligent Investor can provide, we think our portfolios offer a better insight into how a ‘real world' portfolio would have performed.

Portfolios outperform

Happily, our Equity Income and Equity Growth portfolios also show a decent outperformance over the period that the latest Recommendations Report covers, having returned 12.5% and 9.4% per year, respectively. You can also read the latest updates for each portfolio here.  

And our recently launched Small Companies Fund has also started well, returning 25.4% since launch on 1 Feb 17 to 31 Oct 17, ahead of the 14.7% returned by the ASX Small Ordinaries Accumulation Index.

Even so, we hope the 2017 Recommendations Report provides useful information to members regarding the performance of our recommendations and the stocks we've added to our Buy list over the years. If you have any comments or questions, please feel free to leave them below or contact us at 1800 620 414 or at info@intelligentinvestor.com.au

You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.

To find out more about the InvestSMART Australian Small Companies Fund, view the Fund information page.

Disclaimer
Intelligent Investor provides general financial advice as an authorised representative under the AFSL held by InvestSMART Publishing Pty Limited (Licensee). InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and funds and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share.

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