The stocks-to-buy lists are great for filling space in the financial newspapers, magazines and blogs. They make good reading for uninformed investors, flailing about for ideas from any direction.
Those lists often do little for the investors who take the advice. That’s because the prognosticators who devise those lists are usually way off the mark.
It is very difficult to pick securities that are going to go up in value in a relatively short term. 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 where conditions other than their company fortunes may affect the 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.
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