PT  - JOURNAL ARTICLE
AU  - Deniz Anginer
AU  - Meir Statman
TI  - Stocks of Admired and Spurned Companies
AID  - 10.3905/jpm.2010.36.3.071
DP  - 2010 Apr 30
TA  - The Journal of Portfolio Management
PG  - 71--77
VI  - 36
IP  - 3
4099  - https://pm-research.com/content/36/3/71.short
4100  - https://pm-research.com/content/36/3/71.full
AB  - Do stocks of admired companies yield admirable returns? Are increases in admiration followed by high stock returns, and how reliable is the relation between admiration and returns? These questions are answered by Anginer and Statman based on their study of Fortune magazine’s annual list “America’s Most Admired Companies.” They find that from April 1983 through December 2007 stocks of admired companies had lower returns, on average, than stocks of spurned companies and that increases in admiration were followed, on average, by lower returns. The authors also find that the dispersion of returns is high, especially in the portfolio of spurned company stocks, implying that investors who would like to benefit from the return advantage of spurned company stocks must diversify widely among them. TOPICS: In markets, options