Investment research is the process of reducing large piles of
information to manageable ones, distilling the investment
wheat from the chaff.
There is, needless to say, a lot of chaff and very little wheat.
The research process itself, like the factory of a manufacturing company, produces no profits.
The profits materialize later, often much later, when the undervaluation identified during the research process is first translated into portfolio decisions and then eventually recognized by the market.
In fact, often there is no immediate buying opportunity; today's research may be advance preparation for tomorrow's opportunities.
In any event, just as a superior sales force cannot succeed if the factory does not produce quality goods, an investment program will not long succeed if high-quality research is not performed on a continuing basis.
There is, needless to say, a lot of chaff and very little wheat.
The research process itself, like the factory of a manufacturing company, produces no profits.
The profits materialize later, often much later, when the undervaluation identified during the research process is first translated into portfolio decisions and then eventually recognized by the market.
In fact, often there is no immediate buying opportunity; today's research may be advance preparation for tomorrow's opportunities.
In any event, just as a superior sales force cannot succeed if the factory does not produce quality goods, an investment program will not long succeed if high-quality research is not performed on a continuing basis.
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