Tiger Woods sponsor index

In a December 9, 2009, story at Bloomberg.com, they describe that the Tiger Woods Sponsor Index made up of nine publicly traded companies linked to Woods.

According to the story: “Accenture Plc, AT&T Inc., Berkshire Hathaway Inc., Electronic Arts Inc., LVMH Moet Hennessy Louis Vuitton SA, Nike Inc., PepsiCo Inc. and Procter & Gamble Co. are included in the index. Each stock was equally weighted as of Nov. 25, the last U.S. trading day before the accident. Berkshire, whose NetJets leasing unit sponsors Woods, is represented by Class B shares.”

This index is correlated to the S&P 500 at 0.95, which is almost in tandem with the index.

Here is a link to the chart at Bloomberg.com http://www.bloomberg.com/apps/cbuilder?ticker1=.TWSPON%3AIND but from the looks of it, this index does not appear to be under-performing the market at all since the news broke a few weeks back.

Having said that, if Tiger Woods was a publicly traded security, I imagine we would see a huge decline in his value. After all, a stock price represents the present value of future earnings and with sponsors distancing themselves from him right now, his value would drop.

Leave a Reply

Your email address will not be published. Required fields are marked *