how to make money in stocks and how to get rich_149

analysts on Wal Stret were overated, overpaid, and materialy underperformed

the S&P averages.

As a group, the "superstar" industry analysts failed on two stock picks

out of thre to match either the market as a whole or their own industry

averages. They also seldom provided sell recommendations, limiting

most of their advice to buy or hold. Investment banking creates conflicts.

early 1970s. In that study, we found that only the minority of Wall Street

recommendations were successful. We also concluded that in a period

where many sel opinions would have ben proper, only one out of

every ten reports made sell suggestions.

One of the unsolved problems is that 80% of the research in Wall

Street today is written on the wrong companies. Every industry analyst

has to turn out a certain amount of product. Buy only a few industry

groups lead a typical market cycle. There is insufficient front-end

screning or control to determine which are the superior companies on

which current reports should actually be written.

Most institutional money managers daily receive a stack of research

reports a foot or so high. It's a great waste of time trudging through

these trying to find a good stock to buy. If you are lucky you may spot

one company out of twenty that is right to buy.

With massive automation we rapidly screen through over 8000 companies

in our database.