Analyst reports

Just for sharing, here's an interesting blog post about analyst reports and their estimates for earnings.

http://www.ritholtz.com/blog/2011/09/ear...st-errors/

While I think it pays to be skeptical about analyst estimates, I think there's no need to beat them down with a stick. For many industries, even insider managers and executives cannot predict with certainty their companies' earnings going forward.

At the end of the day, the safest way of protecting one from erroneous earnings estimates (and I mean the investor's own) is demanding an adequate margin of safety.

(08-09-2011, 11:17 AM)D123 Wrote: While I think it pays to be skeptical about analyst estimates, I think there's no need to beat them down with a stick. For many industries, even insider managers and executives cannot predict with certainty their companies' earnings going forward.

Thanks for the link! I guess the safest method which works for me is - don't attempt to predict! Haha!