Post Modern Security Analysis
By John Schroy, on July 28th, 2009 |

A pretense of scientific basis has weakened the usefulness of security analysis in the modern era. Fancy mathematics serve to cloud the minds of investors.
The collapse of Long Term Capital Management and the Crash of 2008 were assisted by the injection of ‘junk science’ into investment decisions.
Can (or should) security analysis be considered ’scientific’?
The investment profession:
By John Schroy, on July 26th, 2009 |

The Crash of 2008 raised questions as to the competence of many who work in the profession of security analysis. There are dozens of schools providing professionals with training and certification in this field. However, know-how is not enough.
Commonsense and hard work can be more important than theoretical training and the ability to use the terminology.
This article discusses an endemic problem: Laziness.
Information technology
By John Schroy, on July 10th, 2009 |

Whereas, in the days of Benjamin Graham, an analyst could count on Standard Statistics to provide the essential facts, three-quarters of a century later, this is no longer true in the case of its successor, Standard & Poor’s.
The tsunami of free financial information and increasingly complex markets, have driven up the cost of traditional security analysis. The less expensive route, technical analysis, is now favored by many. We must move beyond Graham & Dodd if fact-based analysis is to remain relevant.
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