AMZN Commentator
Amazon100-Day Reading Sharing Plan — Day 64
A Random Walk Down Wall Street
1. It is extremely difficult for securities analysts to fulfill their basic duty of forecasting a company's profit prospects. Investors who blindly trust the predictions of securities analysts when making investment choices are bound to be greatly disappointed.
2. No matter how professional someone is, we should not take it for granted that their judgment is reliable and accurate.
3. The fact that securities analysts have traditionally rarely advised investors to sell stocks indicates their close ties with investment banking departments. The ratio of buy to sell recommendations has always been skewed towards buying because analysts do not want to offend the companies involved in their recommendations.
4. Analysts are paid not for the accuracy of their forecasts, but for being bullish and maintaining an optimistic stance.
5. When we look at a 20-year period, we find that over 90% of actively managed funds underperform their benchmark indices.$Amazon(AMZN.US)$Novo Nordisk AS(NVO.US)$Cleveland Cliffs(CLF.US)
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