how to make money in stocks and how to get rich_146

Reporting of bond portfolio results is too infrequent and the true overall performance is unclear. Too much emphasis is on yield and not enough is on the increase or decrease in

market value of the assets in the portfolio.

Many institutions buy stocks on the way down and might be categorized

a

s bottom guessers. This is, in some instances, not the best way to produce

a superior performance record. It can place decision makers in

the position of buying a stock that is slowly deteriorating.

Some money management organizations usevaluation models to select

and restrict their investments to stocks in the lower end of past P/E ranges.

While this approach definitely works for a few unusually capable conservative

profesionals, it is nothe best selection method and over time

does not produce truly superior results for the typical institution or

individual investor. Several major midwestern banking organizations

have continually lagged in performance due to utilizing this approach.

A major insurance company in New York that relied heavily on the

undervalued method lost a huge account in 1983 due to steady underperformance