Comments on: A Good Example Why You Shouldn’t Put Too Much Stock Into Investing Newsletters

By: Creative Investor

Creative Investor — Sat, 27 Oct 2007 01:31:56 +0000

I would definitely agree that acting on a random mention in a newsletter or advice of your barber is far from executing a prudent investment strategy. Which is why I avoid such newsletter and rather rely on my own stock screens. Certainly a very good topic to bring attention to.

By: Asset Manager

Asset Manager — Thu, 13 Sep 2007 11:30:58 +0000

Amen to that. We run a discretinary business, but I often get calls from clients about the latest ‘hot pick’ they have on an email or magazine that they have read. I am not saying they are all useless, far from it, but, as Jeremy says “looking at it with a critical eye” is the best advice around.

By: Viola

Viola — Fri, 31 Aug 2007 15:49:11 +0000

I read a lot of those newsletters, or at least the teaser emails they send…but don’t pay for the subscriptions. Follow advice that teaches you how to invest for yourself. Advice worth looknig at to me is based on results…I like Jim Kramer & Toby Smith because you can SEE their portfolios. They are putting the money where their mouth is.

By: Jeremy

Jeremy — Fri, 31 Aug 2007 15:15:04 +0000

That’s right, guys. There is good information out there, but it is just important that you look at it with a critical eye. The big problem is when people just take the information in them as gospel and act solely on it. A little education and some awareness can help you pull useful information out of the newsletters though.

By: Joe Fier

Joe Fier — Fri, 31 Aug 2007 14:29:24 +0000

Good post. Relying on others, especially a company that is probably tied into some commission with an investment, is one of the most harmful things an investor can do. Having enough knowledge to have a general idea of what’s happening could probably help weeding out some of the financial advice given out by these newsletters, too.

By: Eric

Eric — Fri, 31 Aug 2007 14:15:44 +0000

Good post. I’ve been thinking about trying to find some decent investing newsletters to read on a regular basis, but your post has me thinking twice about that. I tend to get my investing advice from other sources and maybe that’s a good thing. I still think there may be some good newsletters out there, that provide sound analysis, but I think I’ll have to use an even more critical eye to spot the good from the bad.