Information Technology Has Revolutionized The Smartest Investment Strategy
Smartest Investment – Do you want to know how to consistently get double-digit and triple-digit returns from stock? The answer is in information technology. Yes. Information Technology.
Most of the shares that I have that have been getting more than 50% returns in less than a year aren’t even on the radar screens of big investment analyst companies. How do I know? Because I have worked at two Fortune 500 financial services firms as Private Banker. And Private Wealth Manager and have never been able to find research in these firms about stocks that most interests me. Why?
Because the way to make money in investing has changed dramatically and large investment companies don’t keep up. One of the reasons large investment companies don’t follow is because most have ulterior motives as pure marketing machines. Nearly every manager in every large investment company they compensate for how much fee income and profits they generate from their office for the company. Not how well their financial consultants are performing for their clients.
There is a big difference between these two goals. That is the reason why former Merrill Lynch star internet analyst Henry Blodgett once stated in a comment that he never believed it would be announced. That other Merrill analyst stock was praised on TV because the top choices were “bullshit” and “rubbish” (Source: Fort Worth Star-Telegram, May 26, 2002).
financial consultants at large companies a huge opportunity
Even honest financial consultants at large Smartest Investment companies find it difficult to find you a huge opportunity among the stocks that their companies track. Why? Because many companies mandate an older age and a lot of experience as a prerequisite for their star analyst. They believe that a head industry analyst with a pair of gray hair is far more credible when appearing in front of their top clients and in front of the American public on television. Personally, if I run an investment company, every analyst I might be under 30 years old. Why?
Well, information technology has revolutionized the ability of analysts to find stocks with spectacular growth prospects before the general public is aware of these stocks. Directions you can find through internet search engines by searching for the right keywords. And also through other creative methods, including the use of blogs.
Oftentimes, the best stock opportunities can be revealed through non-traditional sources of information. Which means NOT Reuters, NOT Bloomberg, and NOT one of the other financial information clearing institutions that are done by large companies that pay thousands of dollars for each month. Oftentimes, the best information is free and online, but the key is knowing how to reveal it.
Typically, when you have a problem you wish to solve related to the internet. Whether it is a web design problem, a problem with obtaining better search engine rankings for your website. Setting up a blog, being able to understand how to search online databases. And so on, would you turn to a fresh-faced kid or someone with gray hair for help? A fresh-faced kid, right? Because typically the younger generation is much more up-to-date on newer technologies, including knowing how to manipulate and find data. See where I’m going with all this now?
Smartest Investment – The reason you’ll never hear about the companies that in five years will be the new Microsofts. And the new Dells from the portfolio managers and financial consultants at large financial services firms is because huge financial institutions have yet to realize that understanding how to source information utilizing information technology is what has enabled the best stock pickers to be right so many times about stocks nobody else has ever heard of.
And don’t be impressed if your financial consultant recommended an IPO plays like Google that skyrocketed because the whole world knew about Google. Your financial consultant should be uncovering the tens and tens of other Go out there that nobody else has ever heard of.
Frankly, I could care less about how many times the top portfolio managers of big investment houses visit the companies of stocks they recommend. I could care less if these top portfolio managers have “access” to the CEOs and CFOs of these companies because of their “reputation”. I could care less about the “global reach” of these investment firms that enables them to research overseas companies. None of this impresses me as a client.
I could care less because of the majority of the time. The big financial services firms are not researching the right companies. By this, I mean the small and micro-cap stocks that nobody has ever heard of. The big firms will spend tens of thousands of dollars to set up these conferences at fancy hotels for their biggest clients and parade their impressive access to big-time company CEOs, but still, I’d rather spend almost nothing continuing to discover stocks that will give me 50% returns in less than a year versus wasting my time listening to excessive information about a huge company that will never grow more than 8% a year. But then again, that’s just my opinion.
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