Originally Posted by
ToiletDuck
I've accepted the fact that I don't know as much as those who write the reviews. I don't look at the stock I look at who is recommending it. I then cross reference that with other references to get a general consensus of if I like it or not. Keeps it much simpler and less time consuming for me. To think that I'm better than someone with their masters and years of experience in the field would be a bad thing. To act on it would be much worse. On my 3 different stocks I'm averaging almost 20%. XJT is the only one bringing me down which is constantly at it's 52week low. I've decided to pick up more of it just to see what happens. On my index funds I'm averaging close to 30% with Ishares brazil and Ishares Australia.
A show of hands is a dangerous way to invest. You gotta ask yourself why an analyst is recommending what they are on a stock or a fund. General rule of thumb is that what an analyst recommends represents that analyst's position in a stock. In other words, if an analyst is recommending a buy for a stock it may be to inflate the price so that analyst can walk away with some percentage gains. Just take everything you hear from an analyst with a grain of salt. As a long term investor, I can not tell you how many times I've heard about a stock or a fund from some analyst or article only to check out the fundamentals and realize there was nothing there worth spending my money on. If you want to chase gains based purely on what other people are saying then thats your prerogative but its worth knowing how to make the decision for yourself.
You don't need an MBA in finance in order to invest intelligently. You just need to be able to read and have a vague idea about whats going on in the world and how it relates to the economy.