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Bill Gunderson
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Bill Gunderson @billgunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now, and developer of the Best Stocks Now smartphone app. He offers four free weeks to his... More
My company:
Gunderson Capital Management
My book:
Best Stocks Now! Summer 2011 edition
  • Investing in the President's Jobs Commission? Not so fast. 0 comments
    May 25, 2011 2:11 PM

    The CEO’s on the President’s jobs commission must know what they are doing, right?
    by Bill Gunderson



     

     

    The CEO’s on the President’s jobs commission must know what they are doing, right?

     

    Just look at the roster. General Electric (GE), Intel (INTC), Eastmann Kodak (EK), Procter & Gamble (PG), CitiGroup (C) American Express (AXP),  Southwest Airlines (LUV) , Comcast (CMCSA), and the former CEO’s of AOL and Time Warner.

     

    Big Timers, all.

     

    The president picked his commission members the same way lots of people pick their stocks. Let’s hope he gets different results because most of those stocks have been terrible investments.

     

    They make money. But for the managers, not for the owners. 

     

    GE, for example, has returned minus 6.6 percent to its investors over the last 10 years. 

     

    The commission members who used to be CEO’s at AOL and Time Warner made business history by engineering the worst merger in history. 

     

    Southwest may be a good airline, but it has lost 4% a year for the last 10 years.

     

    Eastmann Kodak has been diving 20 percent a year for 10 years.

     

    Citigroup received one of the biggest bailouts in history. Not sure what they are even doing on there.

     

    These are tough times, no doubt. But some companies are thriving in tough times -- and making money for their shareholders.

     

    How about companies such as Autozone (AZO) : that gets a grade of A  in my proprietary rating system.

     

    Or Apple (AAPL) which gets an A. or 

     

    CSX, A-. or

     

    Ross Stores (ROST), A, or my stock of the decade,

     

    Priceline (PCLN) A.

     

    These are companies run by people who know who to make money and create jobs.

     

    They are not the only ones either. Of the 2700 stocks I follow, 10% are investment grade.

     

    That’s a lot of good people, from good companies, with a lot of great advice. But none is on the president’s jobs commission.

     

    Perhaps the problem is not just who is doing the talking, but also who is listening.

     

    And that report is not any more encouraging. 

     

     

     

     

     

     

     

     

     

     

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