A year ago, about one quarter of securities research departments announced they were dropping coverage of small=cap stocks, while about one sixth no longer covered mid-cap stocks. A large percentage of large cap stocks were no longer reviewed because less analysts were employed. The situation remains about the same today.
This backs up my position that it does not pay for an investor to evaluate securities. Whether they are professionally analyzed or not.
It’s extremely difficult to know what is going on in any 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?
Their best bet is to invest in low-cost mutual funds or ETFs, matched to indexes. ( See the Earl J Weinreb NewsHole® comments.)
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