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Barron's Annual Roundtable

Similar to the publication of the "Dartboard" column are the predictions of "Wall Street Superstars" once a year in Barron's. Each year, Barron's invites 8 to 12 mutual fund managers, stock analysts, and private money managers to the Roundtable. Only those with established reputations and prominent names are invited. For example, panelists have included people like Peter Lynch, John Neff, Mario Gabelli, Barton Biggs, and Abby Cohen. The panelists typically meet during the first week of January for a question and answer session. In addition, they recommend stocks for the year. A week or two later, Barron's publishes the discussion in the Roundtable column. Although the average analyst may not be able to give us some great stock picks, surely the advice of these superstars will help.

One study investigated the performance of the stocks recommended by the Roundtable panelists. A total of 1,599 Buy recommendations were studied from the Roundtables of 1968 to 1991.10 The recommended stocks beat the general stock market by 1.04% on the day of the publication. This is similar to the price pressure effect in the "Dartboard." But for the year, these stocks only outperform the market by 0.21%. Thus, the so-called "superstars" do not seem to recommend superior stocks.

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