“There are few people on the planet that can destroy wealth faster than an Apple analyst,” Ernie Varitimos writes for AppleInvestor. “With the release of a single ill-timed investor note, Apple stock can plummet 2-3 percent, wiping out $billions of shareholder value, not to mention the affect on futures and dozens of derivative stocks. By what right has such immense power been bestowed upon these people. If they had real talent, they’d be clawing for a spot on the brokerage sales desk, because that’s where the real money is.”
“The fact is most analysts have very little investing or trading experience, and they do very little of the actual data collection and analysis,” Varitimos writes. “They are nothing more than glorified financial reporters… At any time, an analyst might release a investor note that could affect Apple’s price and in turn, your position…something you never figured into your analysis. So, consider that brokerages employ these spokespersons, who play reckless with our fortunes.”
Varitimos writes, “If fundamental analysis had any validity at all, if it was a tried and true scientific method, being performed by experienced and wise analysts, then you would think they would agree for the most part, or at least be in the same ballpark. But you can forget that, because 40 different analysts looking at the exact same data will come up with 40 different conclusions.”
Much more in the full article – highly recommended – here.
MacDailyNews Take: BINGO!
Plumbers require more certification than Wall Street analysts, who, as far as we can tell, require none at all. No offense meant to plumbers; all possible offense meant to so-called “analysts,” many of whom we consider to be charlatans at best and market manipulating scam artists at worst. — MacDailyNews, October 20, 2009
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