Do investors find the treasures of buried shares before the arrival of robots?
Wall Street reigns over the solutions of artificial intelligence in place of analysts in banks and brokerage businesses nominating for investor shares to buy, hold or sell. And robots must make such recommendations exactly as people. And most importantly, you also have to cover a larger set of shares. But robots have not reached yet, while analysts often ignore hundreds of US companies. This highlights an attractive possibility that investors are burying treasures between companies that are usually ignored, or the SO calls great price at a great price. These shares are usually difficult to find, whether or not the analysis businesses are detecting, because the market is generally eager for investors to get what they pay for. Trust your artificial intelligence to choose shares? But there are many high quality companies that are sold at cheaper prices than usual, and it seems to be due to the lack of investors they are looking for. A quarter of the companies covered by the Bloomberg index for collected shares in the United States, which amount to 4000, do not have a major detection of analysts, which are almost small businesses. It is not new, but what is new is that analysts pay more attention to the largest businesses. Companies that cover others that a large amount of obsession with the seven major companies, which are the largest companies listed in the United States, is justified in market value. It is a group of the most efficient and reliable money machines. This cannot be said about the rest of the market, especially the location of the smaller businesses, which have become a dumping of companies that cannot attract capital because of the severity of their fragility. City group: Most employees of the financial sector of the Artificial Intelligence Revolution over the past year, about half of the businesses covered in the Bloomberg 2000 shares in the US registered money, and this indicator contains the largest two thousand companies that follow the largest thousand markets in terms of market value. Analysts this year expect the index to not only achieve a 0.8% return on property rights, which is a general measure of profitability. This is compared to the expected property rights returns with 32% for the large Seven index and 15% for other large companies in the United States. No wonder many investors believe that the biggest is the best. Hidden surprises, but in these collected data, a sudden number of strong businesses that trade well, and perhaps wonderful. In the Bloomberg index, the businesses for shares, the data of which are available – about 3100 businesses are arranged – are according to an equal weight mix of three indicators widely used for quality: property rights, total debt to property rights and the growth of profit growth. These businesses are divided into three groups, which are large, medium and small in terms of market value and compare the highest quality businesses in each group. The quality of large and medium -sized companies was only modestly higher than small businesses, but their judgments were largely diverse. The group of major market value companies traded an average of 23 times the operating profit over a 12 -month period, compared to 17 times for companies with medium market value and only 11 times for companies with small market value. US financial markets remind us of their exceptional nature. This is not the amount of difference in evaluating large and small businesses of similar quality in the highly efficient market such as the US market. It is a rare temptation to look beyond the well -known names such as “Microsoft” and “Alphabet”, both of which have managed to find a place between what I found that it is the 100 best businesses of a major market value, and to look at the large number of circulating companies that are not surrounded by bustle. I mean that most investors do not have time or tendency to dive into stock data in search of different offers, so one of the alternatives is to search for low -cost boxes that target small businesses with the best combination of quality and value. If you determine the amount you need to invest, keep in mind that companies of small market value represent only 6% of US stocks in terms of market value; Most investors will be arrested if they are aimed at awarding about the percentage of it. The transactions in the small stock markets will not last forever, and they will expire if the robots spread, and although investors focus on the big seven, adventurers must find what they will keep there.