Share tips - CAVEAT EMPTOR! (Buyers beware!)

When the Investors Chronicle Magazine arrived a few days ago  it was interesting to read the analysis of their Tips of the Year 2009. In a year which saw the FTSE All share grow by over 21%, the Investors Chronicle performed well below any fund which just involved putting your money in a straight tracker fund. Their top 20 Buy tips grew on average by 217% (including the assumption that Aero Inventory will no longer exist as a going concern) and their top 20 Sell tips declined by 56% on average. Therefore, you would have been broadly flat in you had invested in these 40 stocks tipped by the IC. The lesson is that magazines are a useful source of ideas and I get many this way, but investment decisions should be carefully researched before committing any funds. Remember, "tips are for waiters!"