Question

Do you think the 'guidance' provided by Wall Street (viz. earnings projections, stock price projections etc.) should be the primary tool on which investors should rely when making investment decisions? Why/Why not?

Answer 1

NO, guidance provided by the Wall Street should never be the primary investment decision making criteria because these are just the estimation of the analyst and all such management who are providing with the projection of their management and forecasting of business profits and growth which can never be accurately estimated and they are also produced about certain stocks and hence these estimates and predictions of Wall Street as well as guidance provided by them should never be believed upon completely and individual investor should always back it up with their own fundamental analysis and then they are going to make the investment decision.

Individual investors should always try to make their own investment decision after ascertainment of the fundamental analysis of the stock and forecasting of their own growth rate of the industry after Ascertainment of the macro environment and they should then make decision after all these factors and their should be primary considering the books of accounts of the company and the related valuation before making investment decisions rather than relying upon the guidance provided by Wall Street.