The IBD 100: Does It Really Beat “The Market”?
AdvisorStone, Gregory R.
AltmetricsView Usage Statistics
IBD 100 proclaims itself to be the number one investing strategy and that it has yielded far better returns since its inception than S&P500 during the same period. I examine the validity of these claims by analyzing the performance of IBD100 stock recommendations made between July2005 and Dec 2009. Although IBD yielded 5.54% in comparison to -8.18% by S&P500 during the study period, deeper analysis of the relative performance to the benchmark index reveals that IBD100 stock are smaller and more growth oriented than those of S&P500 and that when comparing the returns of the IBD 100 to more appropriate benchmarks, the excess performance disappears.