• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 14. Media Munchkins and Masters:... > Red Flag 5: Take Media Popularity Po...

Red Flag 5: Take Media Popularity Polls with More Than a Pinch of Salt

Investors shouldn’t give too much credence to popularity contests run by the news media and should instead focus on surveys that are based on statistics. An important example of the former type is Institutional Investor magazine’s annual polls of money managers to determine who they think are the best brokerage research analysts. The problem with these polls is that they turn into beauty contests, with analysts openly lobbying for votes. There is a good reason for this jockeying—in the past, coming in the top three for a sector was likely to mean higher pay and bonuses. Among the past winners in the poll was Merrill Lynch’s then Internet analyst Henry Blodget, who in 2000 came top of the electronic commerce and new media sector despite a series of disastrous buy recommendations. Salomon Smith Barney’s former telecommunications analyst Jack Grubman, who was at the center of 2002 investigations into allegedly tainted research, was also a previous winner.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint