Investment professionals must trust that the raw material of their work, data, is accurate and truthful. Think: Is it just raw or is it material? Did you know that numbers make up only 13 1/2% of the information in an annual report? Looking only at the numbers is akin to the drunk looking for their keys underneath the lamppost. You say you trust your gut, okay, but your success rate looks like 49.4%. Stop flipping coins!
Through the use of computer-based text analysis, investors can increase their confidence in the truth by 40% and in a fraction of the time they would otherwise spend.
Listen in on our next episode of from the research chair, Episode 016, to hear how this is all possible and why adding this ability to your work will elevate what you do.
Michael Falk, CFA, CRC and Jason A. Voss, CFA host From the Research Chair, a twice monthly show designed to help your team's improve their investment philosophy, process, and execution.