Investing Expertise
Can analysts, experts and gurus really give you an investing/trading edge? Should you track the advice of as many as possible? Are there ways to tell good ones from bad ones? Recent research indicates that the average “expert” has little to offer individual investors/traders. Finding exceptional advisers is no easier than identifying outperforming stocks. Indiscriminately seeking the output of as many experts as possible is a waste of time. Learning what makes a good expert accurate is worthwhile.
November 19, 2004 - Investing Expertise
Should investors follow the recommendations of experts in picking stocks? Consider the findings in a April 2001 paper entitled “Can Investors Profit from the Prophets? Security Analyst Recommendations and Stock Returns” by Brad Barber, Reuven Lehavy, Maureen McNichols and Brett Trueman. Using the Zacks database for the period 1986 through 1996, they conclude that: Keep Reading
