Mailbag:
Quality Investments?

Dear Editor:

I read your editorial "New Ways to Invest" (June 2001, p. 8) with much interest. I must say that at first glance, the data and conclusions that you cite were very impressive. However, after a little investigation, I realized that most of the hypothetical investment gain came from two stocks--Solectron and Artesyn. Both were 1991 Baldrige winners. The other winners, at least those that are publicly traded in some form, have generated a combined return of 67% over 10 years, significantly worse than the 163% return for the S&P 500. In fact, since 1991, Baldrige winners have been downright dogs in regard to stock price performance compared to the S&P 500.

I think that you are obligated to tell the other half of the story for your readers before people actually start investing their hard earned dollars in companies that try to win awards instead of focusing on their business.

Joe Bethoney

Editorial Reply:
It's true that Solectron and Artesyn were top performers in the fictional "Baldrige Index." However, according to data on the NIST Web site, four other companies in the Index also outperformed the S&P 500 during the study period: Federal Express, IBM, CitiGroup and Corning. Other companies didn't do so well. But as with any real world index or mutual fund, some stocks perform better than others. And the fact remains that an investment in all of the Baldrige Index companies in this study would have produced the indicated results. Readers can find the details of the Baldrige Index study for 2000 and the preceding years at www.quality.nist.gov/crit2.htm.

Did you enjoy this article? Click here to subscribe to Quality Magazine. 

You must login or register in order to post a comment.

Multimedia

Videos

Podcasts

Karen Spencer, Clinkenbeard's quality manager, discusses what makes the plant stand out, advice for other plants, and looks to the future.
More Podcasts

Quality Magazine

CoverImage

2015 May

The May 2015 edition of Quality Magazine includes articles on cloud technologies, depth gages, ISO 9001, digital inspection and cool new products.

Table Of Contents Subscribe

Topics to Talk About

What topics would you like to see Quality cover more?
View Results Poll Archive

Clear Seas Research

qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Facebook2015_40 twitter_40px.png  youtube_40px.pnglinkedin_40px.png  GooglePlus_40

eNewsletters