Introduction to William J. O’Neil
Let me tell you about William J. O’Neil, a key figure in investing who was a stockbroker, author, and innovator. He pioneered the use of computers in investment research and decision-making. You might know him as the founder of Investor's Business Daily, a major publication in the field. O’Neil wrote acclaimed books like How to Make Money in Stocks and 24 Essential Lessons for Investment Success. He passed away on May 28, 2023, at 90 years old.
Key Takeaways
- William J. O'Neil worked as a stockbroker at Hayden, Stone, & Co. in Los Angeles.
- O'Neil bought a seat on the NYSE at age 30.
- He founded William O'Neil Co. Inc. in 1963, which developed the first computerized securities database.
- William J. O'Neil created the CAN SLIM growth investment strategy.
- He founded the Investor's Business Daily in 1984.
Early Life and Education
William J. O'Neil was born on March 25, 1933, in Oklahoma City. His early life was shaped by the Great Depression and the Dust Bowl, which influenced his financial habits. He studied business at Southern Methodist University, earning a bachelor's degree in 1955, and then served in the U.S. Air Force.
Career as a Stockbroker
O'Neil started his career in 1958 as a stockbroker at Hayden, Stone, & Co. in Los Angeles. As he built his client list and portfolio, he realized that data analytics was crucial for investment success. In 1963, he founded William O'Neil Co. Inc., which created the first computerized daily securities database tracking over 70,000 companies worldwide. By age 30, he became the youngest person to purchase a seat on the New York Stock Exchange.
The CAN SLIM Strategy
Using both technical and fundamental analysis, O'Neil developed the CAN SLIM strategy. This is a bullish approach with seven traits to identify stocks likely to increase in value. You can assess growth potential by looking at a company's current quarterly earnings, annual earnings, new positive changes, share supply, industry leadership, institutional investment, and alignment with market trends. CAN SLIM is an acronym for these seven traits that help determine the most successful growth stocks.
Daily Graphs
In 1972, William J. O'Neil established Daily Graphs, a weekly printed book of stock charts for subscribers. These charts gave individual investors access to the same high-quality research tools as institutional investors. Known for their clarity and design, the charts became popular. In 2010, MarketSmith launched as the online evolution of Daily Graphs. These tools incorporate O'Neil's seven CAN SLIM factors, which repeatedly appear in top-performing companies across market cycles, based on fundamental and technical analysis.
Investor's Business Daily
O'Neil launched Investor's Daily in 1984, a national business newspaper that changed its name to Investor's Business Daily (IBD) in 1991. In 2021, News Corp acquired IBD from O’Neil. IBD offers unique investor tools, research, and analytical products. As of 2023, its website draws more than 5.2 million unique visitors monthly.
Key Questions Answered
You might wonder what the main lesson is in How to Make Money in Stocks. O'Neil incorporates his CAN SLIM method there, along with lessons on reading charts to improve stock selection, reduce losses, and generate profits. He founded Investor's Business Daily in 1984, as I mentioned.
The Bottom Line
William J. O'Neil stands as an influential business leader and educator. He dedicated his career to providing investor education and data-driven methods through his books, publications, and seminars. If you're into investing, his work offers practical, technical insights without the hype.
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