Consulting: the investor is lost
The difference between the pretended world of investment consulters and what happens in the real world. Explained with BYD as example.
It's middle Septmeber. Surprisingly, my eyeglasses are broken. The optican means one hour repair time. What to do in this hour? I see a big consulting company, often to see in German television advertising. So I start a consulter test.
I inform the consulter about BYD, and my prognosis about the big crash of the European car industry and the victory of BYD on the car market. The consulter does not like a prognosis like this.
Only 2 weeks later the sensational message, Warren Buffett invests US$ 232 millions in BYD. You did not read about it? Maybe it's because You can not trust journalists at selecting sensational messages. Google Alerts brings all news listed in my personal alarm word list.
In this way, I saw also the reaction of consulters writing about this investment.
"It's a long time investment about batteries to store electric power from wind energy"
So, I see the BYD F3DM first time at the Geneva automobile salon Also ich sehe den BYD F3DM erstmals am Genfer Autosalon. I receive by Google Alerts the sensational message, starting at 9500.-EUR on the Chinese home market. I calculate, when this car comes for 22000,-EUR to Europe, this will shuffle up the European car industry.
Obviously, Warren Buffett did the same calculations, but there are many keeping the investors uninformed, or this consulters have no idea about the own absence of knowledge, because they think to be a stock market guru.