Using the Global Brands list for investing

Interbrand Global Brands List

Interbrands has published its top Global brands list. The top brand - no surprise here - Coca Cola. The list includes... 

1. Coca-Cola 71,861 ($m) 
2. IBM 69,905 ($m) 
3. Microsoft 59,087 ($m) 
4. Google 55,317 ($m) 
5. GE 42,808 ($m) 
6. McDonald's 35,593 ($m) 
7. Intel 35,217 ($m) 
8. Apple 33,492 ($m) 
9. Disney 29,018 ($m) 
10. Hewlett-Packard 28,479 ($m) 
11. Toyota 27,764 ($m) 
12. Mercedes 27,445 ($m) 
13. Cisco 25,409 ($m) 
14. Nokia 25,071 ($m) 
15. BMW 24,554 ($m) 

You can download the list and the related article at this link.

So what do we do with this data?

One way to use this list would be to use this list for investing. As Warren Buffet says, investments made in well managed companies will pay off over the long run. If you believe that the top brands list is a proxy for a list of well managed companies, then it stands to reason that investing in these companies will help your portfolio grow in the long run.

I will test this hypothesis by creating a portfolio of the top 15 brands to see how the investment in these top brands would perform over a period of one year. I will invest $1 M in these brands, distributed equally, and will see how the stocks to at the end of 2012.