learning from the stock market experts
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Who are the stock market experts? How should you take their advise? And who should you be ignoring.TRANSCRIPT
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Learning From The ExpertsShane Leonard, CFA
![Page 2: Learning from the stock market experts](https://reader034.vdocument.in/reader034/viewer/2022042816/559ad6681a28abee078b4794/html5/thumbnails/2.jpg)
1. Who are the experts?
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts
What we’re going to cover
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1. Who’s are the experts?
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts
What we’re going to cover
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• There aren’t any true experts
- 8,000 companies alone in the US
• But there are lots of professionals who you can categorise as
- specialists, who know a lot about
a very narrow area
- generalists, who know a little
about a wide range of issues
Who are the experts?
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• Everyone has an angle
• Remember, its their job
• They aren’t being nice
Who are the experts?
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1. Who are the experts?
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts
Learning from the experts
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• What’s their motivation?
- more trading equals more profit
- more volatility equals more trading
• Even so, they produce detailed
research on companies, talk to the
CEOs, regulators, the competition
• They have a view & tell us
The brokers
![Page 8: Learning from the stock market experts](https://reader034.vdocument.in/reader034/viewer/2022042816/559ad6681a28abee078b4794/html5/thumbnails/8.jpg)
1. Who are the experts?
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts
Learning from the experts
![Page 9: Learning from the stock market experts](https://reader034.vdocument.in/reader034/viewer/2022042816/559ad6681a28abee078b4794/html5/thumbnails/9.jpg)
• What’s their motivation?
- they are paid to perform
- sentiment is just as important as the fundamentals
• So when an investor is talking
- is he trying to get me to buy
because he owns it?
- to sell because he’s dumped it?
The investors
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1. Who are the experts
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts
Learning from the experts
![Page 11: Learning from the stock market experts](https://reader034.vdocument.in/reader034/viewer/2022042816/559ad6681a28abee078b4794/html5/thumbnails/11.jpg)
• What’s their motivation?
- CBNC and Bloomberg TV want audiences
- they have to entertain
• Talking heads are usually
- sensationalist
- trying to predict the short term
- of limited insight
The talking heads
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1. Who are the experts?
2. The brokers
3. The investors
4. The talking heads
5. Learning from the experts?
Learning from the experts
![Page 13: Learning from the stock market experts](https://reader034.vdocument.in/reader034/viewer/2022042816/559ad6681a28abee078b4794/html5/thumbnails/13.jpg)
• There is no data on the future, so you have to take any
forecasts with a pinch of salt
• Broker recommendations are a key driver of sentiment
• Broker reports are
- a great way to research
- useful sense check
• Not a substitute for you own view
Learning from the experts: the brokers
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• Investor actions are more insightful than their words
• What they say on TV can be different to what they are doing
• They publish their top ten holdings, so if you like an investor
- look at his holdings
- any names you don’t know
• But do your homework
Learning from the experts: the investors
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• Watching financial TV is a great way to lose time and money
• Most of the time, the right action, is inaction
• CNBC reports, it doesn’t get you the inside scoop before
- your stock tanks
- a stock idea becomes hot
• Occasionally they talk to a legend
like Buffett, but what’s YouTube for
Learning from the experts: the talking heads
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• Brokers
- forecasts
- what the market thinks
• Investors
- source of ideas
• But neither are a replacement for
doing your own thinking
Learning from the experts
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Learning From The ExpertsShane Leonard, CFA