Friday, September 28, 2007

Friday Video: SNL on Stock Brokers

Every Friday, in anticipation of the weekend (and Shabbat) I hope to post a video that has some relevance to Value Investing and / Israel.
This first one, a Saturday Night Live classic, is on the stock broking profession. Like most satirical lampooning, there lies much truth within the comedy.
Despite beginning his career as a stock broker, Warren Buffett has often been critical of the stock broking and funds management professions and analysts' research in general. Specifically he has questioned the value of stock recommendations that are short-term oriented and which are based on fickle 'flavor-of-the-month' consensus. Instead he prefers his own independent thinking and ideas, which were mostly generated without a supporting team of research analysts, computers, or research databases.
Three of Buffett's most memorable quotes on the subject that come to mind are:
"Wall Street is the only place that people ride into in a Rolls Royce to get advice from those who take the subway".
"The only role of stock forecasters is to make fortune-tellers look good'.
"I don't read economic forecasts. I don't read the funny papers".

Shabbat Shalom and Have a Great Weekend!

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