Forum Archive Index - June 2001

["hugh webber" <hugh.webber@clear.net.nz>]

hmm, interesting stuff but obviously Neil A Costa didn't understand it
enough to make his fortune. 
Fundamental Analysis requires patience, something that most Westerners
are not good at it in the Western World. Neil A Costa also needs to apply
some common sense; you'd have to be an idiot to put all that work in on
all the listed companies even in just Australia - naturally you follow a 
winnowing process first by running through the P/E and gross yield ratios
first to find candidates for analysis. Who cares if the price continues to
go down if you have bought for income, simply because it is unfashionable
(the Warehouse was unfashionable once). Buy some more; get some mates
together and take it over and realise the net assets.
An obvious problem he has is that he hasn't read, let alone understood,
some
basic books like Buffettology, its all second hand journalese. What else
does
one expect from a journalist I suppose.
I'm more convinced than ever that 'technical analysis' is snake oil stuff.
'Technical Analysis' is to rational share investment what astrology is to 
astronomy.
There's an oft repeated bleat that one should put together the best of 
fundamental analysis and 'technical analysis' to do best. I've never heard
of any cases that validate that. Why combine astronomy and astrology?
It goes further than that: serious investors have a responsibility to the
newbies
to save them wasting aeons of investment analysis time not to mention
thousands of dollars on rubbish like Henley charting and it pains me to see
people being led up the garden path.
Tell me when Neil A Costa is in town, I'd like to ask him some embarassing
questions.
Its rather a joke really. Its like the Manawatu Evening Standard appointing
some
wet behind the ears cub reporter as its 'Economics Reporter' without any
economics
qualification who then presumes to write an article telling Ron Brierley
and Warren Buffett 
 where they've gone wrong.
I'm ROTFL.
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