Primarily the artifact of sustained positive returns recently and short-term memory. There used to be a saying: When your cab driver start giving you stock tips, it is time to bail out of market. When every Tom, Dick and Harry think they can beat the market, time to take a break.
> How about just investing :-)
This is the right way to go for majority of your portfolio. Follow simple, tried and test strategies - buy Index funds/ETFs for majority of your portfolio. Bogleheads Wiki https://www.bogleheads.org/wiki/Main_Page is a good starting point.
If you really interested in individual stock/investment picking, have a very small portion of your portfolio as play money for such endeavors.
> I wonder if you could use something like Zipline/Quantopian to screen huge amounts of consolidated balance sheets for markers of undervaluation. You could reject 1000s of companies and focus your “manual” vetting on the few that remain.
I primarily use similar methodology. Automated filtering of stocks to find a few that I want to review further. It is not scalable. Majority of time is spent on developing strategy for filtering and selecting the stocks for review. I most probably manually review 15-20 stocks a year (Reading SEC filings for the company and competitors, industry news, trade articles, analyzing financial statements, etc) and invest in 3-6 stocks a year at most.
Primarily the artifact of sustained positive returns recently and short-term memory. There used to be a saying: When your cab driver start giving you stock tips, it is time to bail out of market. When every Tom, Dick and Harry think they can beat the market, time to take a break.
> How about just investing :-)
This is the right way to go for majority of your portfolio. Follow simple, tried and test strategies - buy Index funds/ETFs for majority of your portfolio. Bogleheads Wiki https://www.bogleheads.org/wiki/Main_Page is a good starting point.
If you really interested in individual stock/investment picking, have a very small portion of your portfolio as play money for such endeavors.
> I wonder if you could use something like Zipline/Quantopian to screen huge amounts of consolidated balance sheets for markers of undervaluation. You could reject 1000s of companies and focus your “manual” vetting on the few that remain.
I primarily use similar methodology. Automated filtering of stocks to find a few that I want to review further. It is not scalable. Majority of time is spent on developing strategy for filtering and selecting the stocks for review. I most probably manually review 15-20 stocks a year (Reading SEC filings for the company and competitors, industry news, trade articles, analyzing financial statements, etc) and invest in 3-6 stocks a year at most.