More information is not necessarily a good thing
One bias investors have is :
I know better, because I know more. The illusion of knowledge is the tendency for people to believe that the accuracy of their forcasts increases with more information.
Another bias investors have is :
I can make judgement based on what it looks like. Companies that have seen high growth in the previous five years are forecast by analysts to continue to see very high earnings growth in the next five years.
According to James Montier, Global equity strategist Dresdner, Kleinwort Wasserstein.
