When billionaire investors tweet tips, should you listen?
Billionaires and other celebrity investors are taking their message to Twitter. Should you listen?
Billionaires and other celebrity investors are taking their message to Twitter. But should you listen?
Carl Icahn is perhaps the best-known investor using the online short-messaging service to broadcast his stock picks to the world. Last week, he congratulated himself on Twitter for pressing Forest Labs to sell itself. Shares of Forest soared nearly 30 per cent last Tuesday after agreeing to be bought by Actavis for $25 billion.
But Icahn is hardly alone. Other financial minds, including economist Nouriel Roubini hop on Twitter to talk about what’s on their minds. These celebrity investors are so well-known it’s easy to get convinced they’re dispensing helpful stock and investing tips. But it’s important to remember that these celebrity investors’ Tweets aren’t necessarily appropriate for you or your portfolio.
Stocks don’t always respond to their famous Twitter members. Icahn was talking up shares of Apple before it reported its disappointing fourth quarter. Shares fell about 8 per cent a day after the report.
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