I'm still in disbelief that people try to make a living analyzing the same static, stale financial statements that everyone else has. Not to say that fundamental analysis doesn't work, but the kind that does work is not what is taught in the CFA program or in business school. Looking at satellite photos of parking lots outside of shopping malls, or watching TikTok to discover trends is fundamental analysis, and works. Looking at things like price/book and the quick ratio is fundamental analysis, and doesn't. Maybe it worked in the past, but information has been democratized. So-called fundamental people need to get more creative.
@dailydirtnap The @IBDinvestors guys often talk about Bill O'Neil sitting in his car outside the Price Club to gauge the stores success while he was in the trade. What's old is new again...
@dailydirtnap In insurance, one tech that I am working on is called Continuous Underwriting Similarly one needs Real Time Accounting sounds like
@dailydirtnap Macro influences every company. When it helps, it is ignored as it was all about “fundamentals” when it hurts, then we can blame macro
@dailydirtnap How do the “shorts” pick stocks like Carvana , Lernout & Hauspie, Alias Researxh Group, Enron , Herbalife …….. they start with these docs and apply skeptical thinking to Managment lame answers .
@dailydirtnap you seem to have a lot on your chest lately
@dailydirtnap If everyone looked at the markets the same way you did, there would be too much competition and money would be harder to make. I wouldn't beat those guys up too much Jared :)
@dailydirtnap The financial statement stuff is helpful for identifying mispricing (for example, Meta ramping Capex for data centers and earnings contracting as a result) if you understand the full story: AI boom. If you just see “earnings are down,” you play yourself. Many such cases.
@dailydirtnap @AlphaMind101 It still works if you manage to understand the trends and apply them as a filter your fundamental analysis. But yeah, I agree, things have changed.
@dailydirtnap If I like a trade (something like buy co star because they benefit from falling realtor commissions) I’ll take a quick look at ratios and financials to make sure nothing is way off but I’m not analyzing it.