Do you intend to know how to consistently earn double digit and triple digit returns from stocks? The clear answer lies in information technology. Yes. Information technology.
All of the stocks I’ve owned which have earned a lot more than 50% returns in under a year aren’t 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 profit investing has changed dramatically and the big investment firms have not kept up. Among the reasons big investment firms have not kept up is basically because most have ulterior motives as pure marketing machines. Almost every manager at every large investment firm is compensated on how much fee income and profit their office creates the firm, not how well their financial consultants have performed for his or her clients. There’s a difference between those two goals. It’s the reason why former Merrill Lynch star internet analyst Henry Blodgett once stated in a review 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 get you great opportunities among the pool of stocks that their firm tracks. Why? Because many firms mandate older age and a lot of experience as prerequisites for his or her star analysts. They believe a head industry analyst with a few grey hairs is much more credible when appearing before their top clients and before the American public on television. Personally, if I ran an investment firm, each of my analysts could possibly be under 30 years of age. Why?
Well, information technology has revolutionized the ability of analysts to get stocks with spectacular growth prospects before everyone becomes aware of these stocks. Leads can be found through internet search engines by searching the proper keywords, and also through other creative methods, like the using blogs. Often, the most effective stock opportunities can be uncovered through non-traditional sourced elements of information, meaning NOT Reuters, NOT Bloomberg, and NOT any of the other financial information clearinghouses that big wall street firms pay thousands of dollars for each month. Often, the most effective information is free and online, but the important thing is knowing how to uncover it.
Typically, when you yourself have an issue you wish to fix linked to the net, whether it is a web design problem, a trouble with obtaining better internet search engine rankings for your website, creating a website, to be able to discover how to search online databases, and so on, can you turn to a fresh faced kid or someone with grey hair for help? A new faced kid, right? Because typically younger generation is much more up-to-date on newer technology, including knowing how to govern and find data. See where I’m going with all this now?
The main reason you’ll never hear about the firms that in five years would be the new Microsofts and the brand new Dells from the portfolio managers and financial consultants at large financial services firms is basically because huge financial institutions have yet to appreciate that understanding how to source information utilizing information technology is what has enabled the most effective stock pickers to be right so often about stocks nobody else has ever heard of. And don’t be impressed if your financial consultant recommended IPO plays like Google that skyrocketed because depends upon knew about Google. Your financial consultant should be uncovering the tens and tens of other Googles available that nobody else has ever heard of.
Frankly, I really could care less about how precisely often the most effective portfolio managers of big investment houses go to the companies of stocks they recommend. I really could care less if these top portfolio managers have “access” to the CEOs and CFOs of these companies due to their “reputation” ;.I really could care less in regards to the “global reach” of these investment firms that allows them to analyze overseas companies. None with this impresses me as a client.
I really could care less because nearly all time, the big financial services firms aren’t researching the proper companies. By this, I mean the little and micro cap stocks that nobody has ever heard of. The big firms will spend tens of thousands of dollars to create these conferences at fancy hotels for his or her biggest clients and parade their impressive usage of big style company CEOs, but still, I’d rather spend almost nothing continuing to discover stocks that will give me 50% returns in under a year versus wasting my time playing excessive information regarding an enormous company that will never grow a lot more than 8% a year. But however, that’s just my opinion.