Bridge over ocean
1 July 2005 Financial Analysts Journal Volume 61, Issue 4

Aristotle on Investment Decision Making

  1. Abby Joseph Cohen, CFA

In this age of inexpensive and abundant data, investors must remain mindful of the limitations of the data they are using for their investment decisions. Despite widespread problems with the quality, timeliness, and relevance of financial and economic data, many investors accept and react to these data at face value. Often, further analysis of the data and an understanding of the factors that drive the data will lead to increased uncertainty—and may change the analyst's conclusions.

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