Mosaic theory

Mosaic theory

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. During the high profile trial of investor Raj Rajaratnam, defense attorneys used mosaic theory to argue against allegations of insider trading.[2]

It is also a legal theory used to uphold the classification of information, holding that a collection of unclassified information might add up into a classified whole. [3][4] The theory has also been applied to legal reasoning in the context of the Fourth Amendment where the continuous use of GPS surveillance was found to violate the subject's "reasonable expectation of privacy".[5]

See also


  1. ^ "Mosaic Theory". Retrieved 07 December 2009. 
  2. ^ "Why Insider Trading is Wrong"], "The New York Times", Peter J. Henning, April 11, 2011
  3. ^ "Washington Post series: How many security secrets did it spill?", The Christian Science Monitor, Peter Grier, July 21, 2010
  4. ^ "The Mosaic Theory, National Security, and the Freedom of Information Act", 115 The Yale Law Journal 628, David E. Pozen, 2005
  5. ^ "GPS Tracking and a ‘Mosaic Theory’ of Government Searches", "The Cato Institute", Julian Sanchez, August 11, 2010

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Mosaic Theory — A method of analysis used by security analysts to gather information about a corporation. Mosaic theory involves collecting public, non public and non material information about a company in order to determine the underlying value of the company… …   Investment dictionary

  • mosaic theory — (ARTHROPODA) The theory explaining the function of the compound eye, with the numerous ommatidia receiving a portion of the image and then combining them into a total image in the brain …   Dictionary of invertebrate zoology

  • mosaic theory — noun : a theory in embryology: each part of the protoplasm of an egg has its function in forming a special part of the embryo …   Useful english dictionary

  • Mosaic (disambiguation) — Mosaic is decorative art involving small pieces of glass, stone, or other material. Mosaic may also refer to: Contents 1 Art 2 Literature and media 3 …   Wikipedia

  • Mosaic (journal) — Mosaic a journal for the interdisciplinary study of literature   Abbreviated title (ISO) …   Wikipedia

  • Mosaic evolution — (or modular evolution) is the concept that evolutionary change takes place in some body parts or systems without simultaneous changes in other parts.[1] Another definition is the evolution of characters at various rates both within and between… …   Wikipedia

  • Mosaic Legislation — • The body of juridical, moral, and ceremonial institutions, laws, and decisions comprised in the last four books of the Pentateuch, and ascribed by Christian and Hebrew tradition to Moses Catholic Encyclopedia. Kevin Knight. 2006. Mosaic… …   Catholic encyclopedia

  • Mosaic authorship — Moses, by José de Ribera(1638). Mosaic authorship is the traditional attribution of the five books (Torah or Pentateuch) of the Old Testament to Moses, the legendary[citation needed] leader, lawgiver, and …   Wikipedia

  • MOSAIC Research Group — The MOSAIC research group is committed to the investigation and development of new modelling, optimisation and decision support technologies, which bridge the gap between the theory and practice of optimisation. MOSAIC is an acronym for Modelling …   Wikipedia

  • Theory of Pashtun descent from Israelites — The theory that the Pashtun people originate from the exiled Lost Tribes of Israel was widely held as recently as the 19th century. They are the largest ethnic group of Afghanistan, virtually all Muslims.It is based on a variety of ancient… …   Wikipedia