Jun 19, 2008

Bloomberg: Analysts mostly missed Bear Stearns implosion

Analysts did a particularly dismal job of perceiving what was going on in their own industry. The majority of the 17 analysts covering Bear Stearns Cos. had rated the stock "sell'' or "hold'' through 2006, when its price increased 42 percent. Most of the analysts who had had a "buy'' on the shares failed to downgrade them before July 2007, when two Bear hedge funds heavily invested in mortgage-backed securities went bankrupt.

~ "Why Paul Miller in Virginia Is Wall Street's Best Stock Picker," Bloomberg, June 19, 2008, by Kambiz Foroohar

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