Investment Research and Profits

Investment research is the process of reducing large piles of information to manageable ones, distilling the investment wheat from the chaff. There is, needless to say, a lot of chaff and very little wheat. The research process itself, like the factory of a manufacturing company, produces no profits. The profits materialize later, often much later, when the under valuation identified during the research process is first translated into portfolio decisions and then eventually recognized by the market.