UK 05:50 Sunday, 25 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Topical after the LSE.co.uk blowup, In this podcast I explain how the City really works, how analysts communicate real ideas to a select few investors and why broker notes are in reality simply marketing material and so should be completely ignored.
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Comments
Paul Scott
Hi Tom,
Good points, well made. I agree that sometimes broker notes can be ramping BS, but in my experience that type of note is the minority. Most of the broker notes I read are pretty good. The narrative often helps me understand the business model better, and the forecast figures provide a useful starting point for my research. I then reasonableness check the forecasts, and decide whether I think the analyst is being too optimistic or pessimistic, or looks about right.
So to dismiss brokers notes as useless is, in my opinion, wrong. They are usually very useful, in terms of narrative & figures. But I would never take them as gospel, it all needs checking & thinking about.
What I do agree is useless are the Buy/Hold/Sell recommendations! These are so obviously ridiculous, I’m amazed they still do them. Last week I received one broker note which said hold, despite its target price being substantially BELOW the current share price!!! Why on earth would you hold a share where you think the price will drop significantly?!
Overall though, I would say that probably 90% of the broker notes I read provide me with useful information, so are very worthwhile. But I would always read them sceptically, especially where the house broker is clearly trying to talk up the share price!
Regards, Paul.
Spoilt Git
Long since stopped paying serious attention to broker notes. Many seem designed just to get pis into a lather and almost never come true. I’ve seen AIMless shares do the polar opposite after a stellar broker note.
alcira16247
Tom
Thanks for another informative thought provoking bearcast.
Along a similar vein, Tom, what are your thoughts about the current crop of fund managers? Would we all really get richer by following their lead?
For example, appreciate your thoughts about Toscafund’s recent investments in Quindell?
As your aware, the QPP boards long and strong brigade are getting euphoric, taking this event as a huge bullish signal that all is well in Quendron land.