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To: LK2 who wrote (2800)3/12/1998 1:51:00 PM
From: Pierre-X  Read Replies (1) | Respond to of 9256
 
Re: Mindless Screening

Generally when you take a large pool of data and apply simple screening critera to it, you end up with "system optimized" results, meaning you get results that bring out the defects in your screening criteria--not the results that you really wanted. One example of this from my experience as a game developer is tuning a game for balance. In any complex system, small changes in relationships avalanche into huge and sometimes completely unexpected results in other areas of the system. Mathematicians study these things as "chaos theory."

I'm of the (apparently rare) belief that there is NO simple method for finding good plays. There is NO substitute for pounding the pavement, knocking on a dozen doors, and reading a thousand pages. Every day. The Buffett makes on average about one trade a year. <g> The Lynch traded a lot, but he literally knocked on a dozen doors a day, and he could talk your ear off about each and every one of the 500 stocks in his holdings at any given time.

This is not a game for the hobbyist.

God bless,
PX



To: LK2 who wrote (2800)3/12/1998 2:06:00 PM
From: Stitch  Read Replies (2) | Respond to of 9256
 
Larry,

I actually wasn't putting much store in his screen method so much as the coincidence of having just mentioned bsc with you. If investing were that easy we would all be rich.

Best,
Stitch



To: LK2 who wrote (2800)3/13/1998 9:24:00 AM
From: Z Analyzer  Read Replies (2) | Respond to of 9256
 
Off Topic: Does anyone know of the best program for screening stocks based on fundamental criteria. Time to find some new stocks now that I don't love the DDs anymore. Thanks.