IBD

[Brophy]

Quick question, do you guys agree with what IBD and How to Make Money in Stocks have to say about choosing stocks or is there a better strategy for choosing stocks?

Also, what other books do you guys recommend reading?

Thanks

what do they say?

[Sniper]

[ QUOTE ]
Quick question, do you guys agree with what IBD and How to Make Money in Stocks have to say about choosing stocks or is there a better strategy for choosing stocks?


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IBD is a useful tool to aid in stock selection, and the O'Neill system is based on historical data covering the best performing stocks of the past.

That said, there are many useful systems, this is one of them!

[ttw22]

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That said, there are many useful systems, this is one of them!

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Is there any sort of information available on how well this system performed after it was created, and any data on how well it does (especially after brokerage fees)?

[Brophy]

From MSN:

"The American Association of Individual Investors (www.aaii.com) tests more than 50 gurus' stock-selection strategies on an annual basis. Using a screen designed to emulate each strategy, the AAII constructs a portfolio at the beginning of each calendar year and tracks each portfolio’s performance for the year. Then it builds a new portfolio at the beginning of the following year.

For the years 1998 through 2003, AAII’s CANSLIM portfolios produced annual returns of 28.2%, 36.6%, 38%, 54.4%, 20.5% and 79%, respectively. CANSLIM’s 704.8% cumulative six-year return ranked second of all strategies tested. That’s not bad, considering that three of those years produced negative market returns, the worst of times for momentum strategies."

http://moneycentral.msn.com/content/Investing/Findhotstocks/P71529.asp

[ttw22]

Very interesting. I've been looking for some sort of comparison like that. I'll have a look at the AAII site.