Meredith Whitney Not Batting A Thousand, But Who Does?

Meredith Whitney, president of Meredith Whitney Advisory Group has made herself into a very influential analyst on Wall Street, and when she speaks, the markets listen. Unfortunately, she hasn't been right on her investment ideas lately, costing clients potentially lots of money. Whitney called Visa V her "single best buy," and shares have fallen 14% since she made the call. She also said to sell Capital One COF, and shares have since tripled since the call. Everyone has mistakes, and Whitney is no different. The point is, she has been right more than she has been wrong, and she was one of the first analysts to see the cracks appearing on Wall Street back in 2007, when she lambasted Citigroup C for its practices, and put a Sell rating on shares. She is extremely influential, as Time named Whitney one of the world's most influential people, and Fortune added her to its 50 Most Powerful Women list. Whitney defended her picks on CNBC yesterday, saying the picks are meant to be investments, not trades. "If you're going to invest in a stock, it's a long-term investment. That's how my ratings are based." Out of her 19 picks through the end of the month, she has been right 6 times, and wrong 13. The industry group that Whitney is famous for covering, financials, have had a significant run she went on her own and left Oppenheimer, but she believes that the financial industry as a whole is in a world of hurt, and she may be proven right eventually. Only time will tell, but there are a lot of people who betting with her.