Who would have thought that who you lunch with matters? A new way to pick stocks is revealed in BusinessWeek. Research found that if you bet on the CEOs that President Obama has dined with since taking office, you’d be outperforming the S&P 500 index. The six luncheon set of CEOs he has met with outperformed the S&P by more than two percentage points. The article points out the the President is obviously only going to dine with winners, not losers or scandalized companies, so it makes commonsense. Although this strategy for stockpicking is not recommended, it is hard not to think that there is some smart thinking behind the CEO luncheon invitations. Just get out your list of most admired CEOs and see if they are dining at the White House and away you go.
Forget that economics or business degree. This may be a lot easier.