Tuesday, August 28, 2007

Checking broker ratings...

I was looking at a write-up on a few of Meryll Lynch's buy rating at Bespoken.

Anyone with any common sense was rating these as sell at that time so you do have to wonder about the hidden agenda.

The research shows that investors are consistently better off managing their money themselves and anyone saying that you need an expert is ill informed. You are the only one that puts your best interests first.

End of post.

2 comments :

Joe_5000 said...

I recall quite definitely that individual investors do not do anywhere near as well as the market. They trade too much, costing themselves commissions and spreads, and the stocks they dump do better than the ones the buy.

I'm on a friend's computer right now, so I can't give you the exact yearly percentage, but this link will open your eyes:

http://www.cxoadvisory.com/blog/external/blog3-06-07/


Additionaly great links are here:
http://cxoadvisory.com/blog/internal/blog-individual-investing/Default.asp

Deborah said...

I'm never going to find the study I was reading that said contrary...

I do remember that it said people managing their own account did about 6% compared to around 2% with brokers and that would be going through the period of the tech bust.