----- Original Message -----
Sent: Tuesday, February 22, 2000 2:49
PM
Subject: [sharechat] Safeguard future
investment while having fun
Roy,
I'm happily agreeable with your comments that
with the current volatility in the equity markets, having a high level of debt
to finance share investment is highly dangerous (so is at any other
time). I myself have resisted the temptation of using the margin lending
facility offered to me some time ago by one of my brokers for a promised
leverage. However, I serious doubt that many investors/traders would finance
the share purchase on a high ratio of borrowed funds, especially under the
current non-performing equity market in NZ. I could be wrong as I don't have
any statistics to back my claim. I do believe though that majority
people on this forum are responsible investors/traders who practice
diversified-portfolio investment approach. Maybe we have spent too much
time talking about the likes of SVY, AQL, SPE etc., but it is the
uncertainty about the futures of those companies that makes a challenging and
fun topic. I have enjoyed a great deal of various comments contributed to this
forum, including those of yours. While we all need to cautious in the equity
market and to safeguard our investment for the future, we could perhaps also
have a little bit of fun by living on the edge in the tiny corner of our
investment portfolio.
Regards,
Osbert Sun
couldn't agree with you more Osbert
.
my portfolio is getting a hiding at the moment ,
the only stocks that is making my portfolio stop lookinglike a total disaster
are my tech stocks ,however I treat them like the mining stocks of the early
1980 's and the rule ,hold 10% and no more of your portfolio in risk stock...
I hope that I am right :>> My 10% stock is giving me the most
enjoyment at the moment , This type of stock always does ,beause they are full
of B S , live on a house of cards , 9 x out of 10 , the cards cave in,
however we live by greed on the 10% chance that the firm will succeed .I can
name the one's that have succeeded ,however I can not recall 10% of the firms
that have'nt. We live in hope that the ones we hold are the ones that succeed
We can only remember the ones that do succeed ,so that must mean 100%
success , doesn,t it :))
----- Original Message -----
Sent: Tuesday, February 22, 2000 12:22
PM
Subject: Re: Re: Re: [sharechat]
1986-1987
The point being that interest rates going UP comparatively.
With major chunks of debt financing speculative share investment and
share prices declining you don't have to be a mathematical genius to work
out that some significant margin calls are overdue.
Getting back to
your point about having it under control.
The cost of money is getting
higher and higher day by day.
ie 1986/7 numbers 25% interest -18%
inflation = 7%
2000 numbers =
7%......
See IRG research reports
