Let me tell you an old investment story that explains why I am so completely opposed to some popular sires like Into Mischief.
The Goldman Sach’s pharmaceutical analyst came into our office. He gave a brilliant one hour presentation on everything happening in the industry. He knew his stuff cold.
We began discussing individual stocks and one my fellow analysts asked the following stunning but perceptive question:
How much higher would Merck’s stock have to go before you would have to recommend it?
Everyone stopped, some laughed, but the analyst paused, reflected a moment and said:
That is the best question anyone has ever asked me in 20 years. What ensued was a 30 minute discussion of the pressure he felt to recommend anything that was popular, without any regard to the price.
In fact he admitted that the higher the stock went the more pressure there was to put it on his recommended list. Portfolio managers wanted to buy it, why not recommend it. This is the plight of experts in any marketing oriented business.
Every time I hear an analyst, and now bloodstock agent speak, I am haunted by this old conversation.
For 25 years I was the director of research for a publication called Behind the Numbers. We told professional investors what stocks to sell, not buy
It seems the horse industry could use the same thing.
How about:
Behind the Bridal??
Buying A Race Horse 