…the Wall Street consensus has a pretty good record of being completely and utterly wrong.—-James Montier
Mr. Montier is on the asset allocation team at GMO and was writing about analysts’ extrapolations for future profit margins, but I think his words may have more general application. In truth, we have no better ability to forecast, which is why our investment work relies on the systematic application of relative strength. Prices are usually more accurate than the consensus forecast.
