Tax Guru-Ker$tetter Letter
Friday, August 30, 2002
So, who is really shocked to hear that business reporters only like to write good positive things about their subjects, giving readers the impression that the companies are well run and therefor good investment opportunities? This is a story I know all too well.
During the entire time of the dot-com boom, I received so much hate mail for pointing out that those businesses were doomed to failure and anyone stupid enough to buy their stocks would take it in the shorts. However, since all of the big business press were describing the business world as different and the normal business cycles as non-existent, I was out-numbered and ridiculed for sticking to the old fashioned basics of financial analysis.
How many of those so-called financial experts, who were doing nothing more than parroting company press releases, are still considered credible today? Unfortunately, most of them are still out there and they don't seem to be tarnished by their incompetent and downright irresponsible cheerleading for ridiculous business plans and insanely over-valued stocks.