Stock picking 'a fool's errand'

One analyst says what others won't: It's really hard to find good stocks.

By Kim Peterson Jul 13, 2010 2:02PM
We love to throw around stock ideas on this blog. But when it comes down to spending your hard-earned money on a stock, don't trust anyone but yourself.

Even the analysts who spend all day poring over stocks say they can't get it right.

"Recommending stocks in the current environment may well be a fool’s errand," says a top Barcap quant researcher, according to The Financial Times. "Stock selection has rarely ever been more difficult than it has over the past two months."
It's refreshing to see an analyst actually admit that when it comes to stockpicking, no one's very good right now. That analyst says he's going back to basics, and looking at companies with strong cash flows and balance sheets.

Why wasn't he doing that the whole time?

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