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CANSLIM Failure?
by TMF Bogie

With a market that has been rising strongly for the past five years, you'd think that O'Neil's CANSLIM strategy would be doing exceptionally well. What you might not realize is that William O'Neil owns a group of mutual funds, the most well-known of which is the New USA Fund (NUSFX). The total net gain in the past five years has been a whopping... 2.26%.

The market as measured by the Dow Jones Industrial Average has been up 130% in the same time frame. Is O'Neil not practicing what he preaches? Is his protege, David Ryan, simply inept, or does CANSLIM simply not work in such a rigid form?

Perhaps, as Tom Gardner will allude to in his article which follows, it's just not possible for a large institution to replicate this methodology on a large scale when other competing funds can so easily trip your stop losses.

Next: Dbpheonix's Take

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