How does your book solve the conflict of interest issue?

Conflict of interest often arises when an analyst evaluates a company while the institution they work for has other business relationships with that company or stands to benefit from influencing its stock price. For instance, if the institution holds shares in the company, it may have an incentive to overvalue the stock to encourage purchases and drive the price higher. Although regulations exist to mitigate such risks, conflicts of interest can still persist.

In From Rookie to Investor, I address this issue by focusing only on companies covered by at least 10 analysts. This approach reduces the impact of any single analyst’s bias, ensuring a more balanced and objective perspective while minimizing the influence of potential conflicts.