Stocks-to-buy lists are great for filling space in financial newspapers, magazines and blogs. They make for good reading for investors, flailing about for ideas from any direction, whether really informative or not.
Those lists often do little for investors who take the advice. Because those who devise such lists are usually off the mark.
It is very difficult to pick securities that are going to go up in a relatively short time. That’s what lists are about. Top executives in the companies themselves know little about how well their corporate securities will do in the marketplace, when conditions other than their company’s fortunes affect market value.
How can you depend upon a security analyst working from a perspective outside the company? That is why index funds so often outperform managed security portfolios. ( See the Earl J Weinreb NewsHole® comments.)
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