I have several mates who are fund managers. And at the moment the Pearson investment case really divides informed opinion. So I wrote this blog post, trying to marshal my thoughts, about when companies are undergoing rapid change caused by changes in technology. My thesis is that technology does not always improve the business model, in some ways it can makes things worse.
Interested in what other people think!
http://brucepackard.com/an-investment-in-knowledge/
Hi
The market price is determined by the balance of buyers and sellers. Opinion is ALWAYS divided as to whether or not a share is worth buying at the current price. That is how the market works.
My experience is that the only way to make successful investments is to put in the work of doing all the research. Everyone would like a shortcut to this ( including me! ), but there really isn't one. As part of my analysis I always look at a companies Strengths, Weaknesses, Opportunities & Threats.
I used to own some Pearson but sold about a year ago due to their on-going failure to live up to market expectations.
One way forward for you would be to ask one of your fund manager friends to summarise the Buy case, and another to summarise the Sell case. Then you could weigh them up and then make up your own mind.