Which investing newsletters really pay off?

By MoneySense Staff on January 24, 2011
Estimated reading time: 1 minute

We found five newsletters that have managed to consistently beat the market.

Most investing newsletters promise to provide you with hot stock tips — but do they really know what they’re talking about? According to Mark Hulbert, who tracks newsletter performance in The Hulbert Financial Digest, more than 80% of them fail to beat the market over the long term. However, some do consistently outperform — even over a decade or more. Hulbert’s data shows that the following North American newsletters would have netted the best returns over the last 10 years. Annualized return on stock picks over the last 10 years: 21.8% – Outstanding Investments: Commodities picks from Byron King, a former geologist and business lawyer. 14.3% – The Dines Letter: Stock tips from contrarian investor James Dines. 13.8% – The Turnaround Letter: Focuses on out-of-favour companies undergoing turnarounds. 13.3% – Sound Advice: Detects the beginning of economic trends that will have an impact on investments. 13% – The Ruff Times: Howard Ruff’s newsletter offers indications of where gold, silver and the markets in general are headed.