Predicting Your Way to Underperformance

Updated

The following video is part of our "Motley Fool Conversations" series, in which Stock Advisor analysts Jim Mueller and Jason Moser discuss one of the differences between short-term and long-term investing: predictions. Wall Street is focused on the next quarter, but for a very well-followed company (Apple), it can't get its calls right. One analyst is calling for a significant drop in the S&P 500's price at the end of the year, and a double-dip recession never materialized despite numerous predictions of one. Long-term investors should focus on the companies that perform in their portfolios, not the short-term predictions that often turn out to be wrong.

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At the time thisarticle was published Jason Moser owns shares of Berkshire Hathaway. Jim Mueller owns shares of Apple and Netflix. The Motley Fool owns shares of Apple and Berkshire Hathaway.Motley Fool newsletter services recommendApple, Berkshire Hathaway, and Netflix. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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