On CNBC last week, a financial analyst/TV pundit went on air and said, “We are bearish on AT&T—it hasn’t grown its profits at a rate above inflation in a very long time. We don’t have it in any of our client portfolios.” Now, the statement by itself isn’t necessarily indicative of poor investment thought—I would imagine an investment portfolio consisting of Franklin Resources, Nike, Visa, Disney, and Becton Dickinson would create more aggregate wealth than AT&T stock.
Discussing the telecom giant’s 2% growth rate in isolation does paint a picture that would blend in with what the analyst said. But there is a catch: it’s not the whole picture. It’s like only talking … Read the rest of this article!