In the 1960s, William J. O’Neil developed the OM based on his historical studies of past big stock winners. He saw certain characteristics and movements repeatedly emerge before stocks made their big price moves. He noted things like accelerating revenue and earnings growth, high relative strength, increasing trading volume, new products or management, and industry group strength.
Instead, he wanted to share his knowledge with the broader investing community. Taking cues from Dreyfus, O’Neil pioneered a more objective way to invest in stocks — using computers and a database. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.
Those characteristics form the basis of the OM, which we still use to uncover stocks poised to make big moves to this day. Mr. O’Neil published his findings in several volumes of his Model Book of Greatest Stock Winners, which aggregates what does hawkish mean fact-based evidence on more than 1,000 winning stocks all the way back to the 1880s. Market cycle after market cycle, we see that the characteristics and movements of past winning stocks still define the big winners of today.
From a young age, the native Chicagoan lived a life of crime as a car thief on the city’s West Side. In 1966, when he was about 17 years old, he was caught stealing a car and driving it across state lines. Coverage of the latest true crime stories and famous cases explained, as well as the best TV shows, movies and podcasts in the genre. This rating measures the quality of a stock’s institutional sponsorship, giving preference to stocks that are owned by high-performing funds. To obtain the Institutional Sponsorship Rating, William O’Neil + Company averages the three-year performance of all mutual funds owning a stock, plus the trend in recent quarters of the number of funds. In the extensive interview, he described being recruited by the FBI to become an informant and provide information about Fred Hampton, chairman of the Chicago Black Panther Party.
We cut through market noise to deliver actionable investment ideas. William Atchison O’Neill (August 11, 1930 – November 24, 2007) was an American politician and member of the Democratic Party who served as the 84th Governor of Connecticut from 1980 to 1991. He was the second longest-serving governor in Connecticut history, with 10 years in office. Counsel for directors and officers of real estate investment trust in series of shareholder derivative actions arising out of REIT’s disclosures about a lending transaction. And even though Hampton made a huge impact on people while he was alive, he missed out on the chance to live a long life — and perhaps make an even bigger impact. O’Neal was clearly aware of this, as he once mused that Hampton might’ve been a successful politician if he’d lived.
If he joined the Black Panthers as an FBI informant and provided the bureau with information on Hampton’s activities, he wouldn’t get into any trouble for his crimes. Born just outside Chicago on August 30, 1948, Hampton got involved in civil rights activism early on. When he was just a young teenager, he pushed his school to allow Black Narrative and Numbers: The Value of Stories in Business girls to compete for homecoming queen and rallied for an integrated pool and recreational center. Before long, he’d joined the NAACP and was marching alongside Martin Luther King Jr. If he had been arrested by local police, he might’ve languished in prison for years. But instead, he was tracked down by FBI Agent Roy Martin Mitchell.
Early Success Picking Top Stocks
A contrarian by nature, O’Neil was never one to focus on Wall Street rumors or hype. He bucked convention and began his brokerage career in California. Philip Fisher was a pioneer of growth strategy investing and author of Common Stocks swing trading for dummies and Uncommon Profits. A cup and handle is a bullish technical price pattern that appears in the shape of a handled cup on a price chart. Benjamin Graham was an influential investor who is regarded as the father of value investing.
- But he secretly returned to Chicago in 1984 and worked for an attorney.
- In the early hours of January 15, 1990, after visiting with his uncle Ben Heard, O’Neal ran out of the apartment and into traffic on Interstate 290, where he was hit by a car, and killed; he was 40 years old.
- Sales growth and after-tax margins are calculated using quarterly figures, while ROE and pretax margins are calculated using annual figures.
- In each case, he works to understand the details of his clients’ businesses in order to advance their commercial objectives and secure favorable outcomes on their behalf.
“Naturally I’m curious — what the heck is he doing that others aren’t doing?” O’Neil said of Dreyfus and his investing success. He conducted research and confirmed the importance of integrating charts and technical analysis into evaluating stock performance. The U.S. Focus List, cultivated by our equity research analyst team, comprises U.S. long and short recommendations that best fit our time-tested O’Neil Methodology . Using the OM’s rigorous criteria, our analysts pinpoint shifts in stocks’ fundamentals that suggest outperformance over a six-month to two-year horizon. Incorporating key technical indicators, they fine-tune the timing of their recommendations to identify not only which stocks to buy but when to buy them. The Composite Rating combines the EPS Rank, Relative Strength Rating, Industry Group Rank, SMR Rating, Accumulation/Distribution Rating, and the stock’s percent off its 52-week high.
In 2016, the newspaper changed its printing schedule to weekly, but continued to publish news daily on its website.
From research analysts to client support, every member of our team is deeply committed to delivering customized high-touch service to our clients. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. IBD’s MarketDiem newsletter can help guide them in their journey! IBD Digital New Year’s Sale Start your 2023 resolutions with IBD Digital, now only $40 for 4 months—that’s over $99 off!
There is substantial speculative risk in most international stocks. Past performance is not necessarily an indication of future performance. We are headquartered in Los Angeles, with offices in New York, Boston, and London. The creation of Investor’s Business Daily furthered investor William O’Neil’s mission to help everyday people make more money in the stock market. (William O’Neil + Co.)O’Neil in 1984 started Investor’s Daily, which later became Investor’s Business Daily.
It was the first national business newspaper to compete successfully with The Wall Street Journal. IBD’s mission was — and is — to fill the information gap that existed for the individual investor and business community. Early in his investing career, William O’Neil, discovered the importance of focusing on stock chart analysis and company fundamentals. (William O’Neil + Co.)O’Neil’s data-driven focus and natural ability for finding great stocks led to success early on in his career. He had several back-to-back winners, starting with Chryslerin 1962. A year later, he managed one of his biggest trades with Syntex, one of the early producers of the birth control pill.
U.S.Focus List Performance
Since 1963, the O’Neil family of companies has grown into a global brand with more than a dozen entities across three continents. Each of these is embedded with O’Neil’s sense of discipline and his passion for data-driven results. That focus on data was, after all, the foundation of his stock-picking prowess. “He really had a great way of blending quantitative work with human intuition and observation,” said William O’Neil + Co.
As explored in Judas And The Black Messiah, the story of William O’Neal betraying Hampton is a tragic and complicated one. After all, O’Neal was quite young when he was pushed into his controversial role as an FBI informant. But he never backed out of the job, even in the face of tragedy. While he didn’t express remorse for his role as an informant, he did express sadness — and anger — over Hampton’s death. Quickly whisked into witness protection, William O’Neal lived as William Hart in California for several years after being outed as an informant.
These formative experiences instilled in him a strong sense of work ethic and the importance of financial savings. His groundbreaking work analyzing winning stocks and the development of the CAN SLIM system have been recognized by his peers throughout the financial industry. Among his many accolades, O’Neil most recently was named the recipient of the 2020 Lifetime Achievement Award as part of Benzinga’s sixth annual Global Fintech Awards. William J. O’Neil remains an influential business leader and educator dedicated to providing investor education and data-driven methodology through his books, publications, and seminars.
Our rigorous method ensures that all data provides accurate and reliable support for the significant investment decisions our clients make. Employees of William O’Neil + Company and its affiliates may now or in the future have positions in securities mentioned in this communication. Our content should not be relied upon as the sole factor in determining whether to buy, sell or hold a stock. For important information about reports, our business, and legal notices, please go to legal.
Who Is IBD Founder William O’Neil? Learn About The Legendary Investor And CAN SLIM Investing System Creator
After finishing college, Bollinger Bands Definition joined the Air Force and made his first stock purchase, buying several shares of Procter & Gamble. His continued fascination with business and stocks cemented him on his career path to becoming a stockbroker. Through multiple bestselling books, IBD products, seminars, workshops and other achievements, O’Neil has created an enduring and expanding legacy built around educating and empowering investors. Investopedia requires writers to use primary sources to support their work.
By looking at historical weekly trends, the Datagraph Rating is the easiest way to get an overall picture of a stock, as it incorporates multiple fundamental and technical characteristics that influence stock prices. The rating is based on a proprietary formula that assigns certain weights to reported earnings capitalization, sponsorship, relative strength, price/volume characteristics, industry group rank, and other factors. Each stock is assigned a rank from 1 to 99, the best being 99.
Our methodology brings great ideas into focus.
He gave details about his impressions and experiences working in the Black Panther Party, his relationship with FBI agent Roy Mitchell, and his feelings about his activities and his role. He denied having drugged Hampton the night before he was assassinated. In 1969 Hampton was working on the Rainbow Coalition, an alliance among gangs and minority groups in Chicago, and the FBI and police became increasingly concerned about his activities and growing political power. That summer, the police raided Panther offices, arrested several members, and burned the building down.
Not only did O’Neal successfully join the Black Panthers, he also gained the trust of Hampton, the beloved chairman of the Illinois chapter. But behind the scenes, O’Neal was secretly providing the FBI with a floor plan of Hampton’s apartment. This allowed the Chicago police to raid the building — and murder Fred Hampton in his sleep on December 4, 1969. In 1969, O’Neal provided the FBI with the layout of Hampton’s Chicago apartment, which was then passed on to the state’s attorney’s office. In a Dec. 4 pre-dawn raid, Hampton and another party leader were shot dead, four other Panthers were injured, and seven in total were arrested. The deadly raid sent shockwaves through the city and ultimately led to the decline of the BPP and the Rainbow Coalition, the multicultural umbrella group of rising community organizations Hampton had founded.