tag:blogger.com,1999:blog-7294165939647321702.post6383288094041654311..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Analysts Continue To BewilderSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-26486954479707219412008-09-16T17:21:00.000-04:002008-09-16T17:21:00.000-04:00Basically, hold is just a very nice way of saying ...Basically, hold is just a very nice way of saying sell. After all, analysts don't want to jeopardize the possibility of losing business with their sell recommendations. It might come back to bite them in the rear.Jae Junhttps://www.blogger.com/profile/14187375358214668967noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-9985739730748164842008-09-16T16:42:00.000-04:002008-09-16T16:42:00.000-04:00It's a game theoretic problem with the agency cost...It's a game theoretic problem with the agency cost of the analysts. <BR/><BR/>If the analyst is right and the other analysts are right, the outcome for the analyst is good.<BR/><BR/>If the analyst is right and the other analysts are wrong, the outcome for the analyst is good.<BR/><BR/>If the analyst is wrong and the other analysts are wrong, the outcome for the analyst is good.<BR/><BR/>If the analyst is wrong and the other analysts are right, the outcome for the analyst is bad. <BR/><BR/>Here good means "you get to keep your job" and bad means "you're fired!". Consequently, following the herd results in job security. Being contrarian results in either instant fame or getting fired.<BR/><BR/>Corollary: More analysts are not more accurate.Anonymousnoreply@blogger.com