Forum Archive Index - October 2000

["Brian Brakenridge" <brianbrak@xtra.co.nz>]

David:

 

I was wondering if you were, in a non to subtle way, suggesting that amateurs desist from even attempting to understand analysis. Maybe pass a law that states all persons not in possession of a PhD in Higher Finance be banned from trading. You're not a fund manager are you?

 

I don't know if you intended to take a crappy cheap shot at those amateurs who have been contributing some interesting stuff recently. Can I be permitted to restate a point. Analysis is not only quantitative but should be highly qualitative also. No one factor is the ultimate indicator of a company's superior or inferior economic status, especially the infamous PE Ratio. Every indicator isolated is just that, a solitary indicator and I agree with you that far to much analysis can be centered around PEs.

 

However the particular thread of conversation which I believe you are alluding to, is attempting to identify a core of fundamental (albeit amateurish) analytical criteria, both qualitative and quantitative, and by default help people to establish some sound investment discipline.

 

This forum, unless I am mistaken, is all about exchanging ideas, philosophies, news and comments but with an ultimate goal of enlightenment.

 

So lets enlighten and not slash and burn.

 

Cheers

 

Brian