2 of 2 people found the following review helpful
Investing is completely different from the business of investing,
This review is from: Full of Bull: Do What Wall Street Does, Not What It Says, To Make Money in the Market (Hardcover)
Did you know that investing is completely different from the business of investing? You can be the smartest person in the world, but unless you understand how Wall Street works, you are out of luck. This book teaches readers the business of investing. The author says that brokerage firms focus first and foremost on themselves. Next, they care about institutional clients such as mutual funds and hedge funds. Individual investors are not that important to them.
Wall Street analysts, who work for the brokerage firms, analyze and write reports about specific companies. These reports are first sold to institutional clients, and later, to individual investors. Some might think that analysts are great at picking stocks since they know so much about particular companies. But picking stocks is not what they get paid for. They are paid to follow a certain number of stocks regardless of whether they are good companies or not. Out of the companies that they follow, they must recommend something, even if there are better companies outside of the analysts' sectors.
If you do not understand certain conflicts of interest that different players on Wall Street have toward their clients and the general public, you must read this book. You will never view Wall Street the same way again.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market