Do you wish to know how to consistently earn double digit and triple digit returns from stocks? The answer lies in information technology. Yes. Information technology.
Most of the stocks I’ve owned that have earned a lot more than 50% returns in less than a year are not even on the radar screens of the analysts of major investment firms. How do I am aware? Because I’ve worked at two Fortune 500 financial services firms as a Private Banker and Private Wealth Manager and never was able to find any research at these firms on the stocks that interested me the most. Why?IT-Dienstleister Düsseldorf
Because the way to make money in investing has changed dramatically and the big investment firms haven’t kept up. Among the reasons big investment firms haven’t kept up is because most have ulterior motives as pure marketing machines. Virtually every manager at every large investment firm is compensated how much fee income and profit their office makes for the firm, not how well their financial consultants have performed for his or her clients. There’s a big difference between those two goals. It’s the reason why former Merrill Lynch star internet analyst Henry Blodgett once stated in a comment he never believed could be made public, that the stocks other Merrill analysts were praising on TV as top picks were “crap” and “junk” (Source: Fort Worth Star Telegram, May 26, 2002).
Even honest financial consultants at big investment firms find it difficult to locate you great opportunities one of the pool of stocks that their firm tracks. Why? Because many firms mandate older age and plenty of experience as prerequisites for his or her star analysts. They believe a head industry analyst with a few grey hairs is far more credible when appearing facing their top clients and facing the American public on television. Personally, if I ran an investment firm, every one of my analysts could possibly be under 30 years of age. Why?
Well, information technology has revolutionized the power of analysts to locate stocks with spectacular growth prospects before everyone becomes aware of the stocks. Leads are available through internet search engines by searching the proper keywords, and also through other creative methods, including the utilization of blogs. Often, the most effective stock opportunities could be uncovered through non-traditional sourced elements of information, meaning NOT Reuters, NOT Bloomberg, and NOT some of the other financial information clearinghouses that big wall street firms pay a large number of dollars for each and every month. Often, the most effective information is free and online, but the main element is knowing how to uncover it.
Typically, when you yourself have an issue you want to fix linked to the net, whether it is a web design problem, a trouble with obtaining better internet search engine rankings for the website, creating a blog, to be able to learn how to search online databases, and etc, can you turn to a new faced kid or someone with grey hair for help? A new faced kid, right? Because typically younger generation is significantly more up-to-date on newer technology, including knowing how to control and find data. See where I’m using all of this now?
The main reason you’ll never hear about the firms that in five years will be the new Microsofts and the brand new Dells from the portfolio managers and financial consultants at large financial services firms is because huge financial institutions have yet to understand that understanding how to source information utilizing information technology is what’s enabled the most effective stock pickers to be right so often about stocks nobody else has heard of. And don’t be impressed if your financial consultant recommended IPO plays like Google that skyrocketed because the world knew about Google. Your financial consultant must be uncovering the tens and tens of other Googles out there that nobody else has heard of.
Frankly, I could care less about how exactly often the very best portfolio managers of big investment houses look at the companies of stocks they recommend. I could care less if these top portfolio managers have “access” to the CEOs and CFOs of the companies because of their “reputation” ;.I could care less concerning the “global reach” of the investment firms that allows them to analyze overseas companies. None of the impresses me as a client.
I could care less because nearly all time, the big financial services firms are not researching the proper companies. By this, I mean the little and micro cap stocks that nobody has heard of. The big firms will spend thousands of dollars to setup these conferences at fancy hotels for his or her biggest clients and parade their impressive use of big style company CEOs, but nonetheless, I’d rather spend next to nothing continuing to find out stocks that’ll give me 50% returns in less than a year versus wasting my time listening to excessive information regarding a huge company that’ll never grow a lot more than 8% a year. But then again, that’s just my opinion.