In business, no one likes surprises, least of all fund managers, who tend to think they know everything already. Some advice from Mark Niznik, who runs a portfolio for investment house Artemis: when it comes to forecasts, under promise and over deliver.
Speaking today at an IR conference at the London Stock Exchange, Niznik said: 'If you think you're going to deliver 15 percent growth, predict 12 percent, and get your broker to predict 10 percent. Profit warnings do damage and it is an uphill struggle to rebuild trust.'
Niznik adds that research done by a company's broker should align closely with management thinking. If not, what are you paying them for?