Stock Profits: Getting to the Core—New Fundamentals for a New Age

In any form of investigation, initial information is taken seriously

only after it has been confirmed. Whether confined to the realm of

statistics or broader in application, confirmation and verification are

necessary steps. Under the scientific method, these are considered

the most important stages in the testing of information.

The same principles work well when it comes to stock selection.

We may approach the validation of stock selection by testing as-

sumptions that grow from analysis. For example, initial analysis in-

dicates a particular condition; but it is not enough to proceed. The

process requires that you first find confirmation of the information ...