Friday, July 2, 2010

Valuable advice

A valuable advice cannot be made public.
By inference from semi-strong form of efficient market hypothesis, equity analyst's advice can only help an exclusive, small group of people achieve above average market return.
For all others who don't have exclusive access to superb analyst's report, they should just go for lowest cost investment scheme to get average market return.
I wonder how often the cost of an analyst report will lower an investor's return to the extent that he may just do as well without the report?
So in the end, unless you have large sum of capital for investment, it may not be cost effective to pay for superb analyst result while making investment decisions.
If you have small capital, maybe the better way is to be a financial analyst yourself, and try to get some high networth client to offset your opportunity cost of becoming a financial analyst.
That's what I'm doing :)

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