Research Houses: Buy/Hold/Sell patterns

Posted: January 18, 2018 in Uncategorized

Factset has done a beautiful study of the recommendation of Research Houses on which most of the people rely or have to rely (most advisers are compliance bound to take follow it) to make investment choices.

Factset took all data within the last 20 years and got these results

BUY – While generally good performance out of this group, the BUY does show more a behaviour in line with benchmark – not better than benchmark.

Hold – this is the best performing group where some real gems can be found.

Sell – this group generally is true to form, they perform worst than the index.

So, if you want to translate

Research House                                            Action

BUY                                                                HOLD

HOLD                                                             BUY

SELL                                                               SELL

and good luck!!

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