Invester analysts (and the stock market) suck.

[burnedout]

Originally posted by: ROSALIEPIZZA
USA TODAY article
Warren Buffet makes more money investing than anybody I know of and he seems to be out of the market and into foreign currency and making a killing

A number of US companies with significant international exposure are currently making a killing too.

 

[Miramonti]

Originally posted by: tagej
The market prices for stocks are based on a lot of factors, but ZV is right, people often don't realize that the stock price is based on expected future earnings, which in turn is partially based on past events. Thus, even if a stock solidly beats expectations, if the outlook for the company isn't good, the value of the stock should go down accordingly.

Often, expectations are already built into the price of the stock. Investors thought Intel was going to beat previous estimates, so the price of the stock already reflected that expectation. When Intel indeed beat the previous estimate, the stock price didn't have to be adjusted. Since a significant portion of intel's earnings 'beating estimates' came from non-operating income - in this case accounting changes - it's very well possible that the stock price would slide when the market opens.

That's why the key is "long term". Over the long term, such fluctuations iron out, and basically it comes down to successful companies over the long haul being a good stock to own.

Another thing that people often forget is that you can't just say "I made 18% in the market last year" -- that's not meaningful. You have to guage that number based on risk. 8% might be a very good return if it's essentially very low risk holdings, and 40% might no be a good return if it's a bunch of risky investments.

Well said.

 

[sandorski]

Originally posted by: mdcrab
CNBC tonite explained that earnings of $.34/shr included some 1x tax/accounting changes and that after you subtract them, the earning were only $.24/shr which were inline with expectations. That is their explanation as to why the stock did not do much.

mdcrab

Yup, except it works out to $.27. This $.06 is caused by Intel switching Accounting standards, IOW, if they had used last quarters accounting standards, $.27/share is what they would have reported. That's why the $.33 figure is not that impressive, it's the result not of actual improved business dealings, just a result on how those business dealings are accounted.

 

[V00DOO]

These sucks. I own Intel Stocks. I was hoping for some gain.

 

[Hector13]

Originally posted by: Aquaman

Originally posted by: Hector13

Originally posted by: Aquaman

Originally posted by: TommyVercetti

Originally posted by: Aquaman
That is why you should do your own research.

I use Canadian Shareowners Association

Thier analysis works for any stocks😀

Cheers,
Aquaman

How is the Canadian Stock Market?

Pretty darn good actually 🙂 My Canadian Stocks are up 17% for 2003 while my US Stocks are up 8% for 2003 (that is a total % increase for all my stocks).

Cheers,
Aquaman

then your stock selection sucks 🙂

the s&p 500 was up around 25% in 2003
the nasdaq was up about 50%
and the msci canada was also up around 50%

Where did you get those numbers? I personally feel pretty good since even a double digit return is a very rare thing now a days. Since I started investing for myself I've averaged a 17% return and my worst year was the 98' Asian crisis when I was glad to break even 🙂 To tell you the truth........... in the past 3-4 years I would be happy with an 8% return 🙂

Cheers,
Aquaman

I just pulled those numbers off of bloomberg at work.. don't worry.. I was just joking about the whole "stock selection' thing!