VAMatt said:
Acevil said:
I avoided posting in this thread but I feel I need to point out his biggest flaw, it isn't downplaying nintendo. It is downplaying Netflix to the point that investors want him to shut up.
"This Netflix Analyst Has Cost Investors a 2,000% Return" "On Nov. 30, 2011, Wedbush Securities analyst Michael Pachter said Netflix was a broken company, and he saw no way to fix it. Pachter advised his clients to sell the stock, and estimated its value at $6 a share."
"Anyone who followed Pachter’s advice missed out on one of the greatest stock market runs in modern history, a return of more than 2,000% over the last decade. Netflix is now worth 250 billion and trades at about $565 a share. Had you invested just $1,000 when Pachter said to sell, you’d have turned that into more than $20,000." And most of all his opinion hasn't exactly changed much on the fact he believes you should sell.
"Pachter believes Netflix will remain the dominant player in streaming for years, commanding 30% of the market. And yet, he still has a sell rating. He’s increased his price target all the way from $6 in 2011 to more than $300 today. But that’s about $200 below where they are trading." https://www.bloomberg.com/news/newsletters/2021-01-24/this-netflix-analyst-has-cost-investors-a-2-000-return |
To play devil's advocate here.... Assuming the stat given elsewhere in this thread - that he has an average return per prediction of 7.9% - if you take out the Netflix call, he would have a much higher average return. Also note that essentially nobody is able to outperform the market in the long-term with common stock. So, if you take out the Netflix call and his average return goes up to something like 20%, that's pretty good. I have no idea what his average return would ve without Netflix though, because I'm not gonna go do the math. But, I do know that it would be a lot higher, if he has in fact missed Netflix by 2000%. |
Sure, if they forget about that one time he cost his investors to potentially miss out on $20,000, whenever he makes them $200 it must really soften the blow.
