BY Naser:
When looking in retrospect during the past decade, we find that the best performing stocks in the US (S&P 500) were a bunch of unknown stocks. And when we look at what experts’ were recommending and what people were talking about, we find that our investment was halved at best.
In the New Year, the lesson that we must learn is that “experts” do not know everything, we must do our own research and due diligence, and try to avoid following the “herd mentality”. People update your resolutions!
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Excellent point. Always remember that monkeys throwing darts beat wall street managers in stock selection! Also, always keep in mind that sell-side analysts always want you to buy stocks because that is how their brokerage desks make money.
Although the chart proves a valid point, it is very biased in doing so because the losers are all tech companies affected by the one-off tech boom/bust.
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Naser Reply:
January 2nd, 2010 at 2:52 am
I dont think the numbers above are biased because they are based on facts and hard number (it just shows you the best performing stocks in the S&P). What it shows that analysts were pretty hyped about technology stocks at the turn of the century and didn’t foresee the subsequent tech bubble. It shows that they also underestimated demand for energy.
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