This is among the reasons why the conclusions of analysts are sometimes discounted. Another is that an analyst who knows an industry especially well often loses perspective and, although invaluable as a source of factual knowledge, may not be able to formulate a sound judgment. Companies use a number of different ways to cut the costs of research. One group of investment companies uses the services of a company that serves all the funds in the group. Another investment company has, for some years, employed an advisory council to make recommendations. The council consists of leading security analysts of brokerage firms, who are expected to receive their compensation from orders that the firms with whom they are associated may execute.

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