Ever heard the story of the analyst who upgraded a stock to get his children into a prestigious nursery? How about the one who repeatedly slapped buy tags on companies he privately described as “dogs” or “POS” (pieces of s**t)? If you haven’t, you should. Next time you read a broker note it might make you view them differently
Few people exert more influence over stock markets than analysts. Their reports are pored over by investors and are now more accessible than ever before, shaping how companies are valued and perceived on a daily basis.
Many retail investors struggle to understand the jargon littered throughout financial statements. Often, they may have limited knowledge of a company’s key issues, drivers, industry dynamics and competitive pressures and, sadly, cannot pick up the phone to get the lowdown from an inside source.