It’s extremely difficult to know what is going on in any public business. Even insiders in a corporation don’t know how outside events will affect their business. So why should investors bother to buy individual securities after a so-called analysis?
Furthermore, starting just a few years ago, about one quarter of securities research departments announced a dropping of coverage of small-cap stocks, while about one sixth no longer covered mid-cap stocks. A large percentage of large cap stocks are no longer reviewed because less analysts have been employed.
This backs up my position that it does not pay for an investor to evaluate securities. Whether they are professionally analyzed or not.
An investor’s best bet is to use low-cost, indexed mutual funds or
ETFs. .(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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