Do you want 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 which have earned significantly more than 50% returns within just per year aren’t even on the radar screens of the analysts of major investment firms. How do I know? Because I’ve worked at two Fortune 500 financial services firms as a Private Banker and Private Wealth Manager and never surely could find any research at these firms on the stocks that interested me the most. Why?IT-Dienstleister Düsseldorf
Because the best 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 basically because most have ulterior motives as pure marketing machines. Nearly every manager at every large investment firm is compensated on what 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 is a difference between both of these goals. It’s exactly why former Merrill Lynch star internet analyst Henry Blodgett once stated in a review that 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 one of the pool of stocks that their firm tracks. Why? Because many firms mandate older age and lots of experience as prerequisites for his or her star analysts. They believe that a head industry analyst with several grey hairs is a lot 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 capability of analysts to get stocks with spectacular growth prospects before the general public becomes aware of those stocks. Leads are available through internet search engines by searching the right keywords, and also through other creative methods, such as the using blogs. Often times, the best stock opportunities may be uncovered through non-traditional resources of information, meaning NOT Reuters, NOT Bloomberg, and NOT the other financial information clearinghouses that big wall street firms pay tens and thousands of dollars for every single month. Often times, the best information is free and online, but the important thing is knowing just how to uncover it.
Typically, if you have an issue you wish to solve related to the internet, whether it is a web design problem, a problem with obtaining better se rankings for your website, creating a blog, being able to understand how to search online databases, and so on, could you turn to a new faced kid or someone with grey hair for help? A fresh faced kid, right? Because typically the younger generation is much more up-to-date on newer technology, including knowing how to manipulate and find data. See where I’m choosing all this now?
The reason why you’ll never hear about the businesses 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 basically because huge financial institutions have yet to understand that understanding just how to source information utilizing information technology is what has enabled the best 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 whole world knew about Google. Your financial consultant must certanly be uncovering the tens and tens of other Googles on the market that nobody else has heard of.
Frankly, I possibly could care less about how precisely often the utmost effective portfolio managers of big investment houses look at the companies of stocks they recommend. I possibly could care less if these top portfolio managers have “access” to the CEOs and CFOs of those companies due to their “reputation” ;.I possibly could care less about the “global reach” of those investment firms that enables them to analyze overseas companies. None with this impresses me as a client.
I possibly could care less because the majority of time, the big financial services firms aren’t researching the right companies. By this, I am talking about 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 usage of big style company CEOs, but nevertheless, I’d rather spend next to nothing continuing to discover stocks that will give me 50% returns within just per year versus wasting my time playing excessive information about a massive company that will never grow significantly more than 8% a year. But however, that’s just my opinion.