Selection for Stock Analysts


Most dictators are scum, because scum has a comparative advantage in the competition for dictatorships. Which types of individuals are most likely to be successful stock analysts? It depends on how analysts are judged.

Analysts are supposed to study stocks to advise which should be bought, sold, and held. Analysts almost always issue positive recommendations for stocks, however, so we should be somewhat suspect of their motives.

Although the SEC has cut back on this practice, analysts often get inside information from companies. Naturally, companies most like analysts who say nice things about them. Analysts work for investment banks, and investment banks constantly woo companies for new business. As a result, investment banks are most likely to promote analysts who please companies. Consequently, if an analyst is successful, it probably means he toddies to big public companies.




Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition
Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition
ISBN: N/A
EAN: N/A
Year: 2005
Pages: 260

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