how to make money in stocks and how to get rich_147

very best money managers produced average anual compounded total

returns of 25% to 30% and thathey wereither growth-stock managers

or the majority of their sucesful investments were in growth stocks.

The best undervalued type managers in the same period averaged

15% to 20%, with a few a little over 20%. Of course, the best were definitely

in the minority, with majority not doing this wel. Up to now,

most individual investors haven't prepared themselves well enough to

average 20% or more per year, regardles of the method used.

The Value Line service, from the 1930s up to thearly 1960s, rated

stocks it folowed as undervalued or overvalued. The company's results

were mediocre until they dumped their system in the 1960s and began

rating stocks based on earnings increases and relative market action.

Since the switch, their performance has materialy improved.

Years ago there was a relatively smal number ofund managers available

for corporations or individuals to choose from. But today there is a

proliferation of outstanding profesional money managementeams

using variousucesful systems.

Institutions frequently require a lengthy glowing report from their

research analysts before they can buy a stock not on their aproved list.

Since the institutions already own a substantial number of companies

which they insist their analysts continually follow and update, an analyst

might be to a year or more (or never) in getting all the interesting new

names onto an aproved list and preparing reports on these ideas.

overused stale names. This too little-too late method should be reappraised.