http://www.capital-flow-watch.net/2009/08/16/post-modern-security-analysis-part-three-the-economics-of-security-analysis/ Conservative economic commentary from the top-down Tue, 18 Oct 2011 09:51:36 -0400 http://wordpress.org/?v=2.9.1 hourly 1 http://www.capital-flow-watch.net/2009/08/16/post-modern-security-analysis-part-three-the-economics-of-security-analysis/#comment-196 Interview with John Schroy, thought leader in crowdsourcing investment research | New Rules of Investing Wed, 26 Aug 2009 12:33:42 +0000 http://capital-flow-analysis.com/capital-flow-watch/post-modern-security-analysis-part-three-the-economics-of-security-analysis.html#comment-196 <p>[...] The amount that can be spent on fundamental research is limited by return on investment and customary levels of fund management fees. There are competing uses for this money, not the least of which are the remuneration of portfolio managers, marketing expenses, and the profit margin of the fund management company. I estimate that only about 1/100 of one percent of total market value of US stocks and corporate and municipal bonds is spent each year by Wall Street institutions on salaries and bonuses of financial analysts, according the US government figures. (See: The economics of security analysis at http://capital-flow-analysis.com/capital-flow-watch/post-modern-security-analysis-part-three-the-economics-of-security-analysis.html). [...]</p> [...] The amount that can be spent on fundamental research is limited by return on investment and customary levels of fund management fees. There are competing uses for this money, not the least of which are the remuneration of portfolio managers, marketing expenses, and the profit margin of the fund management company. I estimate that only about 1/100 of one percent of total market value of US stocks and corporate and municipal bonds is spent each year by Wall Street institutions on salaries and bonuses of financial analysts, according the US government figures. (See: The economics of security analysis at http://capital-flow-analysis.com/capital-flow-watch/post-modern-security-analysis-part-three-the-economics-of-security-analysis.html). [...]

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