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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Burt Masnick who wrote (6287)12/12/1996 11:33:00 AM
From: Mark Brophy   of 186894
 
Re: Poor analysts

You catalogued some reasons analysts do a poor job:

The stock in trade of analysts is supposed to be their ability to get under the clutter of today's news and foresee the real business prospects out 1,2,3 years (sometimes further). Many analysts didn't do that due to
1. laziness
2. inablility
3. weakness of intellect
4. flat our poor judgement
5. bias
6. being overwhelmed with details


Add the herd effect to the list. Nobody ever gets fired for being wrong in the same way as everybody else.

Also, you can't follow the details of more than 10 stocks if you expect to really understand it well. Reading SI posts of 10 stocks, plus competitors, alone is 20 hours/week, plus perusing SEC filings, trade rags, and other research easily consumes the other 20 hours.
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