Whether you are trying to avoid financial disaster or looking to think more successfully like a stock analyst, there is nothing more essential than the right financial data sources for managing money.
Even heralded investment guru Warren Buffett struggles. He talks about the importance of getting quality financial data sources.
Recently Buffett mentioned the issues Berkshire Hathaway has with "adjusted earnings." He encouraged companies to provide solid information.
Then again, the Oracle of Omaha places a lot of importance on collecting and digesting quality data. In fact, he devotes nearly 80% of his time reading.
Knowing where to find the best financial data sources is important. As is spending your time with the information.
Follow these guidelines and you'll be ahead of the market in no time:
1. Academic Resources
One of the best sources of data for investing can be found through academic institutions. Whether you are an alum of the Wharton Business School or have access to the research library at your own school, you can get help.
Business schools are experts at collecting information on economic trends.
With online resources and digital libraries available and connected to larger reference services many users find a variety of free resources when they utilize academic resources.
Before investing in a service to provide financial data, investors should make the most of academic resources. Work with your local library or the information available at your local university.
You can see if they have connections and digital resources to the leading business schools and data libraries.
2. Market Data And Macroeconomics
Investors who win at selecting stocks and managing a portfolio of investments use a combination of granular information and macro data. This is a great way to make the best possible decisions.
One way to get a macro view of the global market is the Organisation for Economic Co-operation and Development (OECD). It has information organized by themes.
These themes are grouped into items like Education, Labour, Development, and Economic Projections.
Plus, OECD provides information on popular queries and allows users to search within themes.
When it comes to getting the larger picture of trends and analysis, the OECD allows users to access wide ranges of data and quality financial information.
3. Pay for What You Use with Financial Data Sources
There is a blessing and a curse when it comes to data. Unlike the pioneers in investing, today's investors have access to an unprecedented amount of information.
But the wrong type of information can be just as difficult to use as erroneous data. In today's market, the best investors don't have time to waste.
You need that time for capitalizing on an opportunity in the market.
In addition, many investors pump valuable dollars into information and only use a very small percentage of what they pay for.
If one of the first principles of investing is understanding value and possible return, it doesn't make sense to waste money on information you won't use.
The best financial data sources will let you pay for just the information you need and will use.
4. Leveraging Government Sources
Investors targeting businesses in the United States need solid information. To analyze the impact of US commerce in the international marketplace also requires of a wealth of data from government sources.
The Bureau of Labor Statistics, Social Security Administration, and the United States Census Bureau provide information. They give data on businesses, unemployment rates, and have regular data releases.
In addition, the Securities and Exchange Commission and Department of the Treasury provide valuable economic data for serious investors.
Savvy investors recognize the connection between information like unemployment data and the health of the stock market.
While there are many benefits to checking in regularly with the information provided by these government agencies, it can also be overwhelming to stay in touch with it all.
Many investors use financial data sources that collect this data and provide it in a timely way in connection with the individual needs of each client.
5. Yahoo and Google
Both Yahoo and Google provide financial data services for their users. Visitors can move beyond the price of securities to other information.
Using this information you can find trends and news as well as comparisons against market leaders.
Yahoo and Google each allow investors to check the latest valuation. They also can enter their portfolio positions and monitor performance.
You can set up alerts and get breaking news when it comes to investments. Whether you currently own a position or are interested in purchasing, these free services provide great help.
Some investors are interested in downloading historical analysis and collecting data for personalized spreadsheets. Investors can also use this capability to create spreadsheets of key performance indicators.
With the free services from Yahoo and Google, you can make informed decisions.
Investors who want to move beyond data into portfolio analysis are in luck. You can find a number of financial data sources at the Fama/French website.
From US Research Returns to the Fama/French Forum, users can view information related to returns. You can also find the connection between trends and actuals.
From 1 and 3 month performance, as well as yearly returns, Fama/French shows the performance of the various portfolios. Drill-down data is collected along short term and long term strategies.
With Fama/French investors can follow the paths that most align with their goals.
Focus on Quality
When using any financial data service it is important that users understand the provenance of the information they are using. As the old adage goes, "garbage in, garbage out."
Without information you can depend on, you will be making nothing more than guesses. When it comes to choosing the right investments you can't depend on luck.
One of the benefits of using a service is that you can study their track record. Also, you will later on come to understand the quality of the information.
Remember That Knowledge Is Power
Once you know the benefits of finding and using the best financial data sources, it is important to leverage this information. Doing so will let your portfolio grow accordingly.
The amount of data providers might seem overwhelming, but it is important to study capabilities and pick a winner.
At Intrinio, you can trust quality information that is affordable and accessible.
Don't wait to find the information you need. Come sample our documentation, tools, articles, and research now.