Read the analysis and make good stock picks. In plain terms: Target prices and recommendations are for the uncritical. A model portfolio is also a somewhat questionable concept. It’s not advisable to make an analyst a portfolio manager. I know what I’m talking about. I once worked for 9 years as a consultative wealth manager at OP Group. During that entire time, I never actually even knew what our recommendation or target price was for any given stock. Nevertheless, or perhaps precisely because of that, the track record of the advice I gave to clients was very strong. I truly appreciate the work of analysts, but I don’t care for their target prices or recommendations. And I wouldn’t readily take a stock analyst as a portfolio manager.
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