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Value Line

The Value Line Investment Survey has been a very popular source of stock-picking advice for many decades. The long-term success of its stock ranking system has caused the Value Line publications to be purchased by tens of thousands of subscribers. As they are in nearly every library, the readership could easily be in the millions. The Value Line firm itself has produced some employees that later went on to investment fame, such as money managers Charles Albers (Oppenheimer Funds), Sanford Bernstein (Bernstein Investment Research and Management), Abby Cohen (Goldman, Sachs & Co.), and Jeff Vinick (previously of Fidelity Magellan). Others, like Warren Buffet and Peter Lynch, have publicly hailed its research and ranking system.

The most popular of Value Line's stock ranking systems is the timeliness ranking. Some 1,700 stocks are ranked into five categories (1 to 5), where a ranking of 1 means the firm has the highest likelihood of outstanding growth over the next year. Investing in the 100 firms given by this top ranking are reported to give the investor outstanding returns. Indeed, these firms outperformed the S&P 500 Index by an eye-popping average 17.3% per year in the 1970s.[11] The highly ranked firms outperformed the S&P again in the 1980s by 7.9% per year.


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