Why I don't trust analysts.

[touchring]

If analysts are that good, they would be billionaires, wouldn't they? I rather follow billionaires that have proven record. Ross Wilbur, Warren Buffett, Soros and likes. This seems to work better.

[globaleconomicollaps]

Re: Why I don't trust analysts.

I used to have a boss that thought like that. He would say "If he is so smart how come he ain't rich". How about that Albert Einstein guy? Must have been pretty stupid hum? Also didn't Buffet make most of his money through an elaborate pump and dump scheme? Do you want to be part of that?

Also check this out:
http://www.bloomberg.com/news/2012-0...st-losses.html

There is a billionaire investment adviser that managed to screw his clients out of millions through what looks to me like negligence or possibly a payoff.

[c1ue]

Re: Why I don't trust analysts.

Also didn't Buffet make most of his money through an elaborate pump and dump scheme?

Perhaps you could put up a link documenting this claim - it is the first time I've heard such a thing.

As for Einstein - why exactly is it that smarts must mean the ability to make good investments? Most people are smart in some thing, but stupid in others.

The real problem with analysts isn't their investment profits or lack thereof.

The real problem with analysts is that they all work in jobs where they get paid by the companies they rate, or else get paid by investment banks selling services to companies, or in the last case get paid by a subscriber base.

None of the 3 areas above involve actually getting calls right.

[touchring]

Re: Why I don't trust analysts.

An example of how good analysts really are:

http://www.streetinsider.com/rating_history.php?q=BAC

Analyst Ratings for Bank of America (BAC)

BAC Rating Summary

• Buys – 3
• Neutrals – 14
• Sells – 1

BAC Price Target Summary

• Highest: $16.00 (Raymond James)
• Lowest: $6.50 (Guggenheim)
• Average: $9.23

Ticker

| Expand Research on BAC

Overall Rating: NEUTRAL Rating Trend: = Avg. $ Target: $9.23 (-5.8%)

2/15/2012	Bernstein	Downgrade	Market Perform	N/A	7.98	9.80	22.81%	Details
2/14/2012	Citi	Downgrade	Neutral	8.50	8.25	9.80	18.79%	Details
1/30/2012	Goldman Sachs	Downgrade	Neutral	8.00	7.29	9.80	34.43%	Details
10/27/2011	Morgan Stanley	Downgrade	Equalweight	10.00	6.59	9.80	48.71%	Details
10/10/2011	Guggenheim	Downgrade	Neutral	6.50	5.90	9.80	66.1%	Details

http://www.streetinsider.com/rating_history.php?q=BK

Analyst Ratings for Bank of New York Mellon (BK)

BK Rating Summary

• Buys – 3
• Neutrals – 7
• Sells – 1

BK Price Target Summary

• Highest: $32.00 (Barclays)
• Lowest: $21.00 (Rochdale Securities)
• Average: $26.14

Ticker

| Expand Research on BK

Overall Rating: NEUTRAL Rating Trend: Avg. $ Target: $26.14 (+8.3%)

3/16/2012	BofA/Merrill Lynch	New Coverage	Neutral	27.00	24.28	24.14	-0.58%	Details
1/25/2012	Rochdale Securities	Downgrade	Neutral	21.00	20.88	24.14	15.61%	Details
12/16/2011	UBS » Updated 1/25/2012	New Coverage	Neutral	22.00	18.82	24.14	28.27%	Details
11/28/2011	Morgan Stanley	Downgrade	Underweight	N/A	17.70	24.14	36.38%	Details
11/17/2011	SunTrust Robinson Humphrey	Downgrade	Neutral	31.00	19.64	24.14	22.91%	Details
11/15/2011	JPMorgan	Downgrade	Neutral	26.00	20.46	24.14	17.99%	Details