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My Opinion of Investor's Business Daily

In case you don't know, Investor's Business Daily (or IBD as the company often refers to it) is a newspaper published by Willian O'Neil and Company. It's main focus is to provide readers detailed, proprietary information about stocks and the stock market as a whole. I've been reading the paper in one form or another since early 2003. I had just discovered the CANSLIM method a few months prior, and obviously this paper is a great complement to that system.

The paper is divided into two sections. The first section consists of normal newspaper material: headlines, news stories, commentary. It also has some other features. I don't actually read this section very often, as it isn't the reason why I subscribed to the paper. It's nice to have in that it complements the rest of it, but with so many sources for news I find it lacks a compelling reason to read it.

The second section is what makes the paper worthwhile. Appropriately titled 'Making Money', this section of the paper has all the proprietary information that the company puts out (on Monday's the title is replaced by a special section called the IBD 100). It contains listings of the NYSE, NASDAQ, and AMEX stocks that O'Neil and company are following, and includes all the ratings that the CANSLIM system uses.

The paper now comes in two formats: an old fashioned newspaper, or a new age digital format (eIBD). Personally, I prefer the digital format (which is a PDF) simply because I hate clutter. Also it is a lot easier to search a digital paper than real one. Ultimately it doesn't matter - the content is the same.

Overall, I think the 'Making Money' section of the paper is worth the subscription fee. The fundamental data that the paper provides is a great resource for any mechanical (system-based) investor, whether momentum or not. As a follower of Darvas box theory, I find that this paper gives me the kind of information that I need in order to make sure that the stocks I pick are consistent with Darvas' requirements (check out the New America section in particular, which is actually in the first section of the paper).

In my experience, I have found that 'Making Money' makes my life a lot easier by giving me almost everything I need in one small, neat package. It saves me a lot of time to spend on other things (like screening for Darvas stock picks). If you are a follower of the CANSLIM system, you definitely need this paper. It would be folly to follow the system and not have the paper! O'Neil's book devotes an entire chapter to using IBD in conjunction with the CANSLIM system, which I think also applies to the Darvas method.

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