Bill O’Neil or William O’Neil is one of the top-performing stockbrokers and he is known for inventing the growth stock investing strategy – CANSLIM. He was born in Oklahoma City in 1933. He is the founder of the national financial “Investor’s Business Daily” which is the biggest rival of “The Wall Street Journal”. He got a Bachelor of Arts degree in business administration at the Southern Methodist University in 1955. After that, he attended the military service and then started working at Hayden, Stone & Company as a stockbroker. There he became the best broker as he developed CANSLIM – an investment strategy. Good results and financial success saw him starting his own company – the William O’Neil & Co in 1963. It happened when he was only 30, which meant that he was the youngest ever person to buy a place at the New York Stock Exchange. His daily paper was founded in 1983 which started as Investor’s Daily, but since 1991 it is called Investor’s Business Daily. It is the main rival of The Wall Street Journal.
Bill O’Neill trading strategy (in simple words)
As for his investing methods, O’Neil uses a combination of strategies for his investing. He tracks growth stocks with the biggest chance to have their price rise after purchasing. His motto is “buy the strong, sell the weak”. In his CANSLIM, his style is explained:
In order to determine if the stock is worth buying, it should pass these conditions.
C – If the current quarterly earnings per share are increased at least 25% in comparison with the same quarters’ earnings of the previous year,
A – If the annual earnings are greater at a compound rate of 25% yearly over the last five years.
N – If the stock has “a good story”, for example, if it is about new products, new management, and new highs.
S – Look at supply and demand. If the stock is less available, the more it sells will make the price grow. Stocks with 10 to 12 million shares outstanding are worth looking at.
L – Leaders and laggards. Stick with those stocks that outperform and shed those that underperform.
I – Consider the institutional ownership. You should try to get around the companies that are “under-owned” by the top professional investors.
M – Always pay attention to the market direction. Stocks that are on major downturns are better, but avoid purchases after a decline of 10% or more gets underway.
The Model Book of Greatest Stock Market Winners
How to Make Money in Stocks – A Winning System in Good Times Or Bad, McGraw-Hill, ISBN 0-07-161413-3 (4th ed., May 18, 2009)
The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad, McGraw-Hill, ISBN 978-0-07-175211-4 (1 edition, August 10, 2010)
24 Essential Lessons for Investment Success, learn the most Important Investment Techniques from the Founder of Investor’s Business Daily, McGraw-Hill (2000), ISBN 0-07-136033-6
The Successful Investor: What 80 Million People Need to Know to Invest Profitably and Avoid Big Losses, 2003, McGraw-Hill, ISBN 0-07-142959-X
How to Make Money Selling Stocks Short, co-author with Gil Morales, Wiley (December 24, 2004), ISBN 0-471-71049-0
Business Leaders and Success, 55 Top Business Leaders and How They Achieved Greatness”, 2004, McGraw-Hill ISBN 0-07-142680-9
How to Make Money in Stocks: Desk Diary 2005, Wiley; Spiral edition (September 6, 2004), ISBN 978-0-471-68053-6
Reminiscences of a Stock Operator (by Edwin Lefèvre), William J. O’Neil (Foreword), Wiley; Illustrate edition (September 2004), ISBN 0-471-67876-7
How to Make Money in Stocks – A Winning System in Good Times Or Bad, McGraw-Hill, ISBN 978-0-07-161413-9 (4th ed., May 18, 2009)
The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad by William J O’Neil (Paperback August 10, 2010)
Bill o Neill investment offers research using own unique method of stock analysis, the O’Neil Methodology (OM), which uncovers stocks with the most potential to generate alpha.
Mr. O’Neil published his findings in several volumes of his Model Book of Greatest Stock Winners, which aggregates fact-based evidence on more than 1,000 winning stocks all the way back to the 1880s. Market cycle aftermarket cycle, we see that the characteristics and movements of past winning stocks still define the big winners of today.