Forum Archive Index - April 2001

["Mark Hubbard" <mhubbard@es.co.nz>]

Just a couple of quick comments Mike.

 

Regarding the 'game' metaphor, I guess its valid for you to call the sharemarket a game, if that is the way you view it. In the same way, some might view life itself as a 'game'. Its just a personal point of view.

 

The one point, however, I would like to correct :) is that capitalism and free markets are not necessarily the 'win/lose' game you seem to assume. Rather, in a true free market, unregulated (so I admit we are no where close to that), a transaction, indeed, most transactions, will be 'win/win'. The process is simply two informed individuals coming together to trade value for value to then achieve their own individual ends.

 

And now back to work ...

 

 

----- Original Message -----

From: Mike Grice

To: sharechat@sharechat.co.nz

Sent: 22 April 2001 12:13 PM

Subject: [sharechat] Dissecting the postings.

My first posting to this forum.

In the world of investing, who are our competitors? Who are we playing the game against?

Other investors methinks.

In the world of investing, what is our goal? What is our reason for playing the game?

Profit methinks, in any of its given forms.

In the world of investing, what is our most useful tool?

Knowledge methinks.

Hmmm... So let me revise here. I'm playing the game against you guys, I want to make a buck, and I really need to do some swot before I invest.

So I research a stock that meets my own investment criteria, I then invest.

Now, as we all know. There are times when you want the world to jump on the bandwagon with a view to increasing the price of your stock. In contrast there are other times when you don't want ANYONE to see the bargain basement stock that you have got your beady eye on.

Hmmm... So based on the above, and assuming that all investors are playing the game for the same reasons, and that their competitors are other investors, then one must assume that any posting to this forum fits the following categories.

IF THE PERSON HOLDS. They are likely to want as many of their competitors as possible to know about the intrinsic value of their stock, in order to create demand and thus increase share price. (lots of noise)

IF THE PERSON BUYS. They are likely to quietly seek information about the stock, without letting on to their competitors.(hush hush)

IF THE PERSON SELLS. Goal accomplished, profit realised, story end. (No one else needs to know)

 

So how does one really dissect the information gifted in these postings?  To accurately know this, you would firstly need a disclosure from the poster to assess whether they want information on the quiet or lots of noise.Then, is their disclosure the truth or is the poster merely playing the game? Hmmm.

Sure there are those who will help others 100% of the time and want others to share their 'win'. Just as surely there are others who realise who their competitors are and are out to beat them. After all, the more competitors you beat the more you stand to gain right?

 

A lot of postings are extremely useful for individuals to make their own informed decision, and I am certainly not trying to slate this forum, however... Isn't this a strange game.On one hand you need your competitors in order to play the game. On the other you need to beat your competitors in order to win.

 

So if I were to say, TEL looks cheap at anything under 1150cps!!!! (tic)

The truth is I'm probably holding.

 

Mick G