Fundamental analysis doesn't work

Discussion in 'Strategy Development' started by riseluxx, Jan 10, 2010.

  1. riseluxx


    I don't care if Buffet recommends simply doesn't work. I never lost money in it...simply because after months and years of tests via computer programms I've written, reading studies from Harvard, MIT and etc - my conclusion is final: Nor technical analysis, nor fundamental analysis does work.

    It's the null hypothesis...

    My advice?

    Arbitrage, but classical arbitrage and NOT statiscial arbitrage, this is how I make money and most serious people do. Everything else is gambling pure and simple.
  2. Then explain why Buffett is worth $40+ billion and you're posting from your mommy's basement.

    And why you know so much about his methods but can't even spell his name.

    Great ET moment :p
  3. clacy



  4. Perhaps what you meant to was that "Fundamental analysis, *as you practice it*, does not work."

    That way, you don't lump in the success others have had in it with the failures you have observed personally.
  5. sjfan


    How are you testing fundamental analysis with computer programs? True fundamental analysis requires more than playing with a few price and earning ratios. It's about going out and talking to the company's owners, employees, vendors, peers, etc. If you are just testing a few buying/selling rules based on some financial statement ratios, you aren't doing fundamental anlsysis

  6. Oh how splendid...another "I can't do it so no one can" thread :D
  7. You may be better off to read stuff from Rutgers or Denison. :cool:
  8. I figured he was referring to Yannick_Buffet who is well known for his ski mountaineering but lesser known for his equities trading strategy. :D