We’re proud to announce that “Why Are Analysts Almost Always Wrong About Apple?,” our latest article for Forbes, was selected as an “Editor’s Pick.”
Despite having access to the most expensive algorithms and predictive models, analysts consistently miss the mark with their predictions. Yet when they publish their reports or appear on CNBC, they can dramatically affect a stock’s price, for better or worse.
Prior to Apple’s most recent earnings report, analysts from Morgan Stanley and Bernstein painted doomsday scenarios: the iPhone X was a dud, they weren’t selling enough phones, growth in China was slowing, etc.
The stock was dragged down to the mid $160s due to all the negativity. After the earnings report revealed that the analysts were dead wrong and Warren Buffett revealed that Berkshire Hathaway purchased 75 million more shares of Apple, the stock surged and hit an all-time high of $190.37 last week.
We’ve long maintained that relying on analyst predictions often does more harm than good when it comes to your portfolio. In this article, Karl Kaufman exposes some of the analyst’s motivations for the calls they make and reveals who really benefits from analyst reports (hint: it’s not individual investors!).
As an individual investor, it’s your responsibility to come to your own conclusion about a stock and the company’s long-term growth potential. Analysts are prone to groupthink and herd mentality, and as we’ve written before, it’s essential for you to think differently from the herd in order to achieve greater success.
This article sheds some light on the role analysts play in affecting your investments. We hope you find it to be a valuable read.
Click below to read the article at Forbes, share this article with your friends and leave a comment below to let us know what you think!
Ready to find out more?
We're watching the stock market so you won't have to. Get our instant text and email trade alerts whenever we make a trade and gain exclusive access to a multi-million dollar portfolio.
Try our Membership risk-free for 90 days with a full money-back guarantee. If it's not for you, we'll give you a refund -- no questions asked.
The Best Investing Apps You Need To Beat The Market
Money Back Guarantee
Trade alongside an individual investor who's DOUBLED the market over the last ten years (521% return vs. the S&P’s 261%, as of 10/31/19).
Our average annual return over those 10 years is 20.04% compared to 13.70% for the S&P 500.
Try our Membership risk-free for 90 days. If it's not for you, we'll give you a full refund -- no questions asked!