Do you intend to learn how to consistently earn double digit and triple digit returns from stocks? The clear answer lies in information technology. Yes. Information technology.

A lot of the stocks I’ve owned that have earned a lot more than 50% returns in less than annually are not even on the radar screens of the analysts of major investment firms. Just how do I know? Because I’ve worked at two Fortune 500 financial services firms as a Private Banker and Private Wealth Manager and never could find any research at these firms on the stocks that interested me the most. Why?IT-Dienstleister Düsseldorf 

Because the best way to make profit investing has changed dramatically and the big investment firms have not kept up. One of the reasons big investment firms have not kept up is really because most have ulterior motives as pure marketing machines. Virtually every manager at every large investment firm is compensated on how much fee income and profit their office creates the firm, not how well their financial consultants have performed because of their clients. There is a difference between both of these goals. It’s exactly why former Merrill Lynch star internet analyst Henry Blodgett once stated in an opinion he never believed will be made public, that the stocks other Merrill analysts were praising on TV as top picks were “crap” and “junk” (Source: Fort Worth Star Telegram, May 26, 2002).

Even honest financial consultants at big investment firms find it difficult to get you great opportunities one of the pool of stocks that their firm tracks. Why? Because many firms mandate older age and a lot of experience as prerequisites because of their star analysts. They believe that the head industry analyst with a few grey hairs is much more credible when appearing facing their top clients and facing the American public on television. Personally, if I ran an investment firm, every one of my analysts would probably be under 30 years of age. Why?

Well, information technology has revolutionized the power of analysts to get stocks with spectacular growth prospects before the general public becomes aware of these stocks. Leads are available through internet search engines by searching the proper keywords, and also through other creative methods, like the using blogs. Often times, the very best stock opportunities can be uncovered through non-traditional sourced elements of information, meaning NOT Reuters, NOT Bloomberg, and NOT the other financial information clearinghouses that big wall street firms pay 1000s of dollars for each month. Often times, the very best information is free and online, but the important thing is knowing how to uncover it.

Typically, when you have a problem you want to fix related to the web, whether it is a web design problem, a problem with obtaining better search engine rankings for the website, setting up a web log, being able to learn how to search online databases, and etc, could you turn to a new faced kid or someone with grey hair for help? A brand new faced kid, right? Because typically younger generation is much more up-to-date on newer technology, including knowing how to manipulate and find data. See where I’m choosing all of this now?

The reason you’ll never hear about the businesses that in five years would be the new Microsofts and the new Dells from the portfolio managers and financial consultants at large financial services firms is really because huge financial institutions have yet to appreciate that understanding how to source information utilizing information technology is what has enabled the very best stock pickers to be right so often about stocks nobody else has ever heard of. And don’t be impressed if your financial consultant recommended IPO plays like Google that skyrocketed because the whole world knew about Google. Your financial consultant should really be uncovering the tens and tens of other Googles out there that nobody else has ever heard of.

Frankly, I could care less about how precisely often the very best portfolio managers of big investment houses look at the companies of stocks they recommend. I could care less if these top portfolio managers have “access” to the CEOs and CFOs of these companies due to their “reputation” ;.I could care less concerning the “global reach” of these investment firms that permits them to analyze overseas companies. None of the impresses me as a client.

I could care less because many time, the big financial services firms are not researching the proper companies. By this, I mean the tiny and micro cap stocks that nobody has ever heard of. The big firms will spend thousands of dollars to create these conferences at fancy hotels because of their biggest clients and parade their impressive access to big time company CEOs, but still, I’d rather spend almost nothing continuing to find out stocks that will give me 50% returns in less than annually versus wasting my time hearing excessive details about a huge company that will never grow a lot more than 8% a year. But however, that’s just my opinion.