Most investors research stocks like they choose a sandwich

[BIG-notorious]

Interesting article by Proinsias O'Mahony on how individual investors research stocks before purchasing. Includes the gem that "...the median investor devotes about six seconds to risk statistics."

Most investors research stocks like they choose a sandwich

stock research article

www.irishtimes.com

 

[Steven Barrett]

I'd 100% agree with that analysis. I've lost count of the amount of people who tell me that they are just going to invest in a conglomerate like Berkshire Hathaway because it is just like a fund. Or they are just going to pick the top 10 companies in the MSCI World index. No consideration of price, earnings, PE ratio etc.

 

[Brendan Burgess]

Or they are just going to pick the top 10 companies in the MSCI World index

And that is the right strategy - other than making sure that they are not all in the same industry.

Investors, analysts & commentators are fooling themselves when they talk about price, earnings and P/E ratios - the market has already factored these into the share prices.