How to profit from others' credulity
Article Abstract:
Nicholas Barberis, assistant professor of finance at Chicago University, Robert Vishny, finance professor at Chicago University, and Andrei Shleifer, of Harvard University, have developed a model based on concepts used in psychology to explain why investors make mistakes when they look at new information. They believe that shareholders can become excessively optimistic about a company's prospects if that company consistently reports earnings that exceed expectations. This excessive optimism pushes the share price to abnormally high levels, which are later corrected when investors realize that they have been too optimistic.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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Time to put your chips on the table
Article Abstract:
The UK's information technology companies have performed extremely well in 1997 and 1998. This sector is likely to see continued growth as UK companies increasingly depend on the use of information technology to gain advantage over their rivals. Those wishing to invest in information technology stocks would be well advised to try to identify value among the smaller, quality firms. These firms look considerably more attractive than the very largest stocks, as many are currently achieving percentage profits growth equal to or higher than their larger counterparts.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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