Stock Research

During the 1990s, the equities with the greatest momentum were technology stocks. Despite incredibly high debt-to-equity ratios, negative price-to-earnings ratios, and poor internal leadership, technology stocks soared throughout the latter part of the decade, simply because investors continually bought them. The market was so strong that fundamental stock research seemed to be an ancient practice, because people were making money without it.

Rather than focusing on companies that were positioned for long-term profitability and growth, investors were riding the wave of consumer confidence, which turned out to be a bubble, ready to burst at any moment. Most investors reaped the benefits of the bull market for several years, then eventually lost a large portion, if not all, of their profits when the market headed south. Thorough stock research could have saved many portfolios.

Even value investors lost money at the turn of the century, but not nearly as much as speculative investors. Since their money was invested in financially strong companies, they were positioned for long-term profits despite the economic downturn. Speculative investors panicked and sold their shares, while value investors took advantage of the low stock prices of great companies and purchased shares, fully confident they would eventually rise, as they almost always do over the long haul.

This level of stock research requires significant time. However, by spending the extra time analyzing the true strength of a company and how it is positioned for future growth, investors spend less overall time researching stocks, because they are buying and holding rather than constantly trading. With ValueSheet, the Excel workbook created here at Analytic Research LLC, even the most thorough stock research is fast and easy. Simply enter the company ticker symbol, and within seconds, over 20 pages of valuable financial data is downloaded automatically.

Popularity Index: 2%

(No Ratings Yet)

 Loading ...