Quote from michaelscott:
The guy is right. Your research is worthless and here is why.
The only way for you to know what is truly happening with the company is for you to be on the executive team. There is no other way of knowing what is truly going on. Whatever research you perform will not be 100% valid in the end run. In reality, the general public is usually shown rosy pictures from top management. You never see whats really behind the curtains.
Analyst upgrades or downgrades are also useless. There is no way of knowing the reasoning behind their argument. They might be trying to buy more shares at a lower price or trying to help their clients exit out of a large position.
Technical analysis is a better way to figure out where a price is headed. However, even that may not be valid 100% of the time.
Therefore, research is worthless, technical analysis is a better guideline. However, even that is just a guideline and not a rule.
In the end run, its a big gamble and the only way for you to truly know what is happening is to be a part of the executive team.
