Mosaic theory, also referred to more colloquially as the scuttlebutt method by Philip Fisher in his seminal work Common Stocks and Uncommon Profits, in finance is the method used in security analysis to gather information about a corporation. Mosaic theory involves collecting information from different sources, public and private, to calculate the value of security. Applying the mosaic theory is as much art as it is science.[1] An analyst gleans as many pieces of information as possible, determines if they tell a story that makes sense, and decides whether to recommend a trade.
It is also a legal theory used uphold the classification of information, holding that a collection of unclassified information might add up into a classified whole. [2][3]
See also
References
- ^ "Mosaic Theory". Investopedia.com. http://www.investopedia.com/terms/m/mosaictheory.asp. Retrieved 07 December 2009.
- ^ "Washington Post series: How many security secrets did it spill?", The Christian Science Monitor, Peter Grier, July 21, 2010
- ^ "The Mosaic Theory, National Security, and the Freedom of Information Act", 115 The Yale Law Journal 628, David E. Pozen, 2005
