Market Analysis: Why Dorfman’s 30-30 Club Isn’t That Special

by | Apr 14, 2011 | Podcasts, Stock Market Comments

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And if you are relying on a podcast for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.

If you do not have an investment adviser in the New Jersey or New York area, we encourage you to contact Mullooly Asset Management at 732-223-9000 or through our website.

Under no circumstances should any of the content discussed on this podcast be considered investment advice.

In this week’s John Dorfman column, he makes an analogy between the 30-30 club in baseball and his own 30-30 club for businesses.  To make his cut, the stock has to have a 30% return on stockholders equity in the last year and 30% average annual earings growth over the past five years.

Here’s the point:  30-30 in baseball isn’t such a big deal anymore. The same goes for businesses.

Who cares if stockholders’ equity grew by 30% in the last year?
We want to know what’s happening this year.

Even though some of the names are in positive trends, I don’t like relying on fundamental analysis.  If you buy a stock because some analyst expects (PREDICTS) an average annual growth, you’re sunk if those earnings don’t perform as expected.

As an investment adviser, it’s not prudent for me to make “blanket recommendations” – if you have any questions, call us at the office and we’ll talk about the names on the list.

Here’s the real kicker: at the end of the article, Dorfman discloses that he only owns one of the names on his Elite list.
John, if you really feel a particular stock is “elite”, do your clients a favor: BUY IT.

The Mullooly Asset Management Podcast can be found below. The Podcast can also be found on iTunes. Go to the iTunes Store and simply search for “mullooly.” Under no circumstances should the information contained in this blog or podcast be considered investment advice.

Thank you for listening. We welcome your comments and questions.


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