If you’ve ever thought about how you–one lone individual out there making your investment decisions on your own–can possibly hope to beat the results of a large mutual fund, here’s how. Yes, it’s true that a big investment company has enormous resources. Analysts can chop and count every number about the target company, figuring out the history of the company’s revenues, earnings, cash flow, free cash flow, working capital, debt, overhead, liabilities, taxes, expenses, productivity, raw materials, etc. They can figure every valuation ratio in the book and even invent more. They can also visit every company whose stock...
