Analysts, have you ever considered how powerful an impact you have EVERY SINGLE MORNING on the wallets of small investors with your opinions, morning reports, model portfolios, and stock comparisons?
When you present “the numbers,” it can swing the market by up to ten percent in either direction. Take Restamax, for example, and how you’ve been speculating on it for about a month: “Buy,” “Add,” and “Reduce.”
Still, Restamax’s share price keeps climbing above your target prices, and it will continue to do so. As a layman, I simply ask, why?
What about Zeeland or Verkkokauppa - BUY. Both seem to be doing poorly. Your morning report seems to have an effect until midday; the impact fades once trading gets going, and the next day, there’s nothing left of it. But by then, the traders have made their profit.
Investors are better off making investment decisions when they have readily available, high-quality information about companies. The extent of our influence on daily price movements is irrelevant to us; our task is to ensure that investors have good information about companies available.
As an investor, I would not focus on how analysis moves prices. If an investor wants to improve, they should focus on the target company itself and what factors drive the value of the company’s stock and in which direction they are developing. Good analysis provides a tremendous amount of help in this regard.
With great power comes great responsibility. Well, these simple sentences can be thrown around as “USA-isms”. Say the same in Swahili or even Russian. Trust in you is gone, young business students.
Well, what did I say about Verkkokauppa yesterday? The money went there because of the recommendation: “BUY” “pre-chewed quality information about companies”
I didn’t make it, I waited for the autumn returns and lost. The investment journey still holds true there. Let’s see if on Monday, despite the recommendations of the knuckleheads, I pull everything out of Zeeland, Verkkokauppa, and Evli with a small loss - Oh, thank you young and charming analysts on the Helsinki shore with your sailboats! Wonderful, Leijonat (Lions) - Wonderful! My best regards to Nordnet.
Ok. If the impact is so great on a small investor, another small investor should specifically use this feature as part of their own investment strategy.
Yep, that’s the point! If the impact is significant, then it’s worth subscribing to the model portfolio notifications and making the same moves as the model portfolio to capture easy gains right from the start after that, just patiently hold on…
Yeah, I’d rather have too big an impact than not get information about companies and have the stock price jump aimlessly from retail investors’ vague movements. At least Inderes’ recommendations are based on some kind of valuation.
There are all kinds of believers among us. Some believe in technical analysis, others in geopolitics, others in fundamentals, etc., and act accordingly, believing in it. Just as in life in general, there are enough believers to fund preachers. And I’m not belittling Inderes’ excellent information package on companies; it’s certainly necessary, has been, and is at least for me. But it’s still the believing investor who moves the courses, and the conductor is usually a so-called expert.
It’s truly a shame, @Johan_Knaus, if you happened to hold the stocks where we were wrong! In investing and following over a hundred companies, misses are inevitable. As a team and looking at the overall picture, we have performed excellently in recent years and received a lot of recognition in the industry. Nevertheless, we must learn from every mistake and continuously develop to succeed in the extremely competitive stock market in the future!
It’s also important to remember that investing is a long-term game. A few bumps shouldn’t be felt; good diversification and holding on tight will give the best results
The model portfolio has quite a few stocks with very low trading volume. When Inderes announces that it has bought/sold them, the price moves significantly. Thus, Inderes can “manipulate” the price. The model portfolio should acquire stocks that can actually be traded and avoid stocks with trading volumes typically <€50,000/day. Now there are too many of these completely untradeable stocks in the portfolio.
Inderes operates according to its mission (=Helsinki Stock Exchange as a better trading place) by buying undervalued small-cap companies it finds.
Explanation:
The goal of the model portfolio and analysis work is to generate excess returns (and it has succeeded in this).
When market valuations are at their peak, there are few companies with sufficient return expectations among large players. In such cases, well-considered choices naturally fall on small growth companies. It’s futile to imagine that by buying Wärtsilä, Kone, Sampo, Nordea, etc. today, one could achieve a track record similar to the model portfolio…
If the above goal had not been set, Inderes might as well throw in the towel and close the model portfolio to indices.
Imagine if no one were to do these analyses and recommendations on small-cap companies. Wouldn’t the markets then function significantly worse than they do now, and wouldn’t there be even more thinly traded papers without any attention?
General (not a reply to the previous writer):
Inderes sometimes seems to receive complaints on a couple of forums, but fortunately, its long-term track record speaks for itself.
If the impact is significant, then it’s worth subscribing to the model portfolio notifications and making the same moves as the model portfolio to capture easy gains right from the start