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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (37442)	4/20/2010 11:11:08 AM
From: deeno	Read Replies (1) \| Respond to of 78765

"My basic idea is why compete against the professionals when you can compete with other amateurs?" your not really competeing, unless of course you see it that way. The professionals, as you call them provide basic financials as they see them and trends as they see them. Then they extrapolate some kind of opinion based on whatever they think is important. What does that have to do with you? When you discover and idea or stock and develope some kind of criteria, do you think its a new idea never thought about? By looking at widely followed companies you can see how much of "your " idea is actually consenses (and therefor priced in) or contrary (higher risk reward criteria). Underfollowed companies leave you more in the dark about the current "value" of the company and therefore demand a higher risk/reward evaluation. IOW just because its not followed well doesnt mean your idea isnt completely priced in. You just dont know it. What ive found that the individual has over the professional is time. They need to be right, now, as they are judged quarterly/annually where as you have time for your supposition to play out. So if you in early (a contrarian) you can watch the timeliness of your idea unfold as people that need to be right, now, fall in line. The more analysts, the more you know where YOU stand. Sorry to butt in, had some free time.