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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (41005)	1/10/2011 4:06:53 PM
From: Jurgis Bekepuris	Respond to of 78485

MCsweet, I agree that under-followed or hated stocks may outperform the recommended stocks. I agree investors should look at all stocks whether they are recommended or not. I do so. However, let's look at article's implication that you shouldn't buy top recommendations. The title says: "Why You Shouldn't Trust Wall Street's Top Stocks for 2011". Why? There's good reasoning: top picks outperformed in 2010, but underperformed in 2009 and 2008; top picks underperformed S&P500 for 5 years. OK, great reasons not to follow top picks. Then there's crappy reasoning: look, but hated stocks outperformed loved stocks in 2010, 2009 and underperformed in 2008; they outperformed over five years (with survivorship bias - although I am not sure why there is survivorship bias at all - account for all the BKs in the year when you bought them). So you should not buy loved stocks. And IMHO this reasoning is flawed and shouldn't be in the article.