Top 100 Brands Outperform S&P 500 by Nearly 60 Percentage Points, WeSeed Study Shows

Thu Jan 29, 2009 10:40am EST

* Reuters is not responsible for the content in this press release.

CHICAGO--(Business Wire)--
A new study by WeSeed - the stock market for the rest of us -- finds that during
the past nine years America`s top 100 brands have drastically outperformed the
S&P 500 by a whopping 59.52 percentage points. The findings underscore the power
of stocks with strong consumer affinity. 

The S&P 500 produced a drop of 28.13% for the nine years ending in 2008, while
the Top 100 Brands, based on the Business Week/InterBrand Best Global Brands
ranking, generated a 31.39% return. These leading names were also less risky as
a group, with a volatility measuring 57.71% for the S&P 500 vs. 52.85%. Brands
from the same company (such as KFC and Pizza Hut) were counted as one company
(YUM! Brands). Data details are available upon request. 

If $10,000 were invested in January of 2000 through December of 2008 in the S&P
500, it would have resulted in a $2,810 loss for a value of $7,190 while
investing in the top 100 brands would have returned $13,140 or a gain of $3,140-
enough for a down payment on a car or about a year`s worth of groceries for a
typical family (US Census Bureau). 

"For the millions of Americans who`ve seen their retirement accounts decimated,
this study confirms that you can invest in the everyday brands you know and love
and witness far better results," said Jennifer Openshaw, WeSeed`s President and
author of The Millionaire Zone (Hyperion). "These companies generally perform
well because they reinvest in the brand and deliver what consumers want." 

Openshaw will hold a free webinar on this topic on Tuesday, February 3rd (7:00PM
EST/6:00 PM CST) - Boost Your Investments: Learn Why Top Brands are Topping the
Market. She`ll also take participant questions. To register, go here

Despite the drag of financial and retail companies in the latter part of 2008,
the overall top brands outperformed because of their strong consumer brand
products. They include the following:

 The top 10 performers (ticker):             2000-2008 Total Return (%)  
 1. Volkswagen/Audi (VLKAY)                  702.35                      
 2. BlackBerry (Research in Motion: RIMM)    427.16                      
 3. Marlboro (Altria Group: MO)              354.87                      
 4. Google (GOOG)                            261.94                      
 5. Pizza Hut/KFC (YUM! Brands: YUM)         246.65                      
 6. Apple (AAPL)                             232.06                      
 7. Nintendo (NTDOY)                         168.22                      
 8. Smirnoff (Diageo Plc: DEO)               145.03                      
 9. Danone (GDNNY)                           140.00                      
 10. Accenture (ACN)                         137.33                      

What`s also worth noting about the study is that the top 100 brands include
names like AIG (down 97.67%), Citi (down 77.21%), Merrill Lynch (down 67.31%)
and Ford (down 90.31%). Even with their dramatic drops, consumers would have
seen a higher return overall had they opted for "what they know." WeSeed
believes consumers can benefit by following the WeSeed philosophy of using the
experiences from their everyday lives to improve their investment decisions. 

Sports, Autos Lead the Pack

As one would expect with the financial crisis of 2008, financials were the worst
performing group. They were far outpaced by sports, autos (largely due
Volkswagen), and food and drink.

                            Average Return    Volatility  
 Sports                     96.29             43.61       
 Autos                      90.18             70.25       
 Food & Drink               74.30             37.57       
 Consumer Products          71.40             37.18       
 Health                     28.24             27.07       
 Transportation/Shipping    27.05             39.09       
 Technology                 20.83             51.50       
 Fashion                    17.76             47.79       
 Entertainment/Media        -15.30            45.59       
 Energy                     -21.68            45.76       
 Online Retail              -21.71            55.72       
 Financial                  -30.78            76.99       
 Other                      83.89             50.59       

"Our mission at WeSeed is to help real, everyday people understand that they`re
smarter investors than they think," said Openshaw. "If Americans simply use the
insight they already have - by listening, watching and talking to others -- they
can make smarter decisions about their 401(k)s, their jobs, their lives." 

The WeSeed community is a Facebook-meets-Wall Street-like platform where users
can learn about stocks and give investing a try in a safe, risk-free
environment. The site features a proprietary tool - WeSearch - that delivers
relevant stock ideas based on key words. 

To learn more or to join the WeSeed community, please visit: 

Greenough Communications
Danielle Eccleston
Jennifer Openshaw, President

Copyright Business Wire 2009

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