“Wall Street people learn nothing and forget everything.”
— Benjamin Graham
Benjamin Graham is known as the “father of value investing.” Two of his books merit inclusion in your library, Security Analysis (1934, written with David Dodd) and The Intelligent Investor (1949).
When asked about the accuracy, or lack thereof, of Wall Street forecasts, Graham reflected on his studies. His results indicated you had the choice of tossing a coin and taking the consensus of expert opinion.
As to why that was, he answered that everybody in Wall Street was so smart that their brilliance offset each other, that all the information they know was already reflected in the level of stock prices, and consequently whatever happens in the future represents what they don’t know.
Gain some knowledge each day and use it. It helps you stay a step ahead of the crowd.
Enjoy the rest of your weekend!