An investment analyst sees, knows, and understands all of this, but the AVIstocks program does not
What does neither the analyst nor the program know?
No one knows how GRMN’s stock price will change on the exchange. First, any company may face - and does face from time to time - unexpected difficulties or, conversely, positive developments that cannot be predicted in advance. Second, stock market rumors - which often stir up unfounded euphoria or unfounded fears among investors - have a significant impact on stock price movements. Both the analyst and the program work only with “past information” available at the time a decision is made and use it to make predictions about the future. But a prediction is just a prediction. Furthermore, the program does not understand the qualitative, non-numerical, substantive information that an analyst understands.
Can the AVISTOCKS program beat the market?
Only extensive testing under various conditions can provide the answer to this question. We have conducted thousands of experiments with our strategies. The result: yes, a program that analyzes only companies’ past financial performance and the reasonableness of their stock prices produces a stock portfolio that outperforms the market over long-term investment horizons.
Is it possible to determine who will perform better, an analyst or a program?
Unfortunately, no, that’s not possible. The program operates according to a predetermined algorithm; it always selects stocks based on strictly defined rules. An analyst takes non-quantitative factors into account; his selection results do not stem from the application of any rigidly defined algorithm. An analyst’s work is always somewhat of an art; a program’s work is pure mathematics. Furthermore, it is impossible to conduct thousands of experiments with an analyst.
Therefore, when you see the results of today’s selection of promising stocks from an investment perspective, compiled by an investment analyst, and compare them with the set of stocks selected by the AVIstocks program, you cannot predict which option will ultimately prove to be the best.
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