This article was coproduced with Chuck Walston.
Nicholas Ward’s recent article, “How I Beat The Market Again In 2023,” has just hit the stands in our Investing Group. As a kindred spirit in the investment world, Nicholas and I share a similar approach to the market.
Contrary to the pessimistic voices, which even include a certain Mr. Buffett, Nicholas and I firmly believe that regular folks can consistently outperform the market.
“My biggest pet peeve when it comes to investing is the constant negativity by the uber-bears, the disheartened traders, the financial advisers or other know-it-all “professionals”, and even to a certain extent, the Bogleheads, who all stand on their collective soapbox together and declare that it’s impossible for the average Joe living on Main Street to beat the market.”
While I may not share the same level of annoyance, the lack of market understanding is something I find equally exasperating. In fact, I have discussed with Brad the idea of co-authoring a book to help demystify the vast potential of investing and its role in transforming lives for the better.
I want to emphasize that I am just an “average Joe.” Prior to my finance journey, I grew up in challenging circumstances, served in the Army, and later pursued a career in law enforcement. With no formal education in finance, I delved into dozens of books and market research. If I can do it, so can you. It’s as simple as that.
The Proof Is In The Results
Anyone can claim to beat the market, but the question remains – can they back it up?
The table below showcases the returns of my Buy-rated articles published from October to December, with the assumption of an equal investment in an S&P 500 index fund and the highlighted stock on the day the articles appeared.
It’s worth noting that out of the 20 stocks rated as buys, 16 yielded positive returns. Thirteen outperformed the market, with 10 recording double-digit gains. My buy-rated picks over the last quarter outperformed the S&P 500 by over 8%.
These numbers also do not reflect the stocks’ total returns. The listed tickers have an average yield of 2.48%, a full percentage point higher than the S&P 500.
The Foundation Of My Stock Selection
When evaluating a stock, I prioritize companies that exhibit certain key characteristics.
A company I consider must have investment-grade credit ratings. I also analyze factors such as current debt, cash and cash equivalents, and a firm’s debt
