Chapter 8

"Tipsters" have been around since before 1920. Many investors would seek out the "advice" of a tip-giver for the obvious benefit of getting the inside track on the future of a stock. The tips came with no warranty, and if it didn't work out (mostly didn't) there was no blame or recourse. 

Humans still want the advantage of no-work and a big profit from the modern tipster.

The analysts are better than the rogue street-tipster of 100 years ago, but their opinions also need to be tempered by some facts. How often are the analysts right? It's well-known on Wall Street that an analyst is hired based on their following (client base). A brokerage firm wants commissions and respect. They don't look at the results of the analyst nearly as much as their following. What does that mean for you? Buyer Beware.

Their data is usually solid and well researched. However, the conclusions are to be investigated and evaluated by our own wisdom. The analyst can be wrong half the time and nobody seems to care. If you follow their opinions, your portfolio is affected and they won't be sending you any money for their mistakes or miscalculations.