Yes, but remember there are multiple layers to that. I have worked as a buy side analyst in a small team (in my former career) and did much less detailed modelling.
There is an incentive structure that pushes fund managers to look at their rankings this year: there is no point in aiming at outperforming over a decade if you got fired two years in for underperforming. It has happened to people who have not bought into booms.
I actually think avoiding the "hype de jour" is one place where small investors have a chance to do well. Avoid the overhyped, pick up the neglected and you can outperform.
No argument. Incentives matter. There's one company I looked at for a modest investment and I was like "This is the only company in the world that can do something that is obviously needed in semiconductors but has long cycles" and it stagnated for a year or two. (And then went up considerably.)
As a financial analyst I might very well have logically held off for a bit.
There is an incentive structure that pushes fund managers to look at their rankings this year: there is no point in aiming at outperforming over a decade if you got fired two years in for underperforming. It has happened to people who have not bought into booms.
I actually think avoiding the "hype de jour" is one place where small investors have a chance to do well. Avoid the overhyped, pick up the neglected and you can outperform.