Should you bother to read analyst reports?

by Chris on January 16, 2014

If you invest in stocks you probably read analyst reports. Or at least you probably read summaries pulled from these reports in the financial press, right? So the question is … should you pay any attention to any of these reports?

I answer that question in this week’s Strategy Lab column for the Globe and Mail. It was fun to write this article, which I think contains some thoughts I’ve never put down in writing before. I’ve presented some of this material to MBA classes when guest lecturing, but I’ve never written about it.

If you’re not familiar with my style of investing, I take a very long term focus on stocks. I don’t believe in timing the market or timing individual stocks with one small exception. I do believe it makes sense to enter hiqh quality stocks when everyone is freaking out over small things.

Analyst reports, unfortunately, don’t really help the long term investor very much most of the time. But there are useful aspects to them, which I explain in my article. Go check it out and tell me what you think.

Derek February 7, 2014 at 11:02 pm

Hi Chris,

First i have to say i quite enjoy reading all your articles and its nice to see your ideas compared against another of my favourite writers/investors Norm Rothery.

I am curious if you care to share how your personal portfolio fared over the same 12+ month period (start of strategy lab till now) has fared. You have absolutely blown the doors off everyone since the start of this contest.

Would you care to share your real portfolio % rise vs strategy lab % in an upcoming article?


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