Forum Archive Index - June 2001

["nick" <helmett@xtra.co.nz>]

             The internet seems to have an effect on shareholders,

many people are becoming more involved with their share

investments. It used to be possible to put the share certificates

away in a draw and forget about them. Hopefully after a period of

years their value would of increased.

       These days however we are constantly being informed

how our shares are performing, we see the charts . all the news,

the gossip etc all unfold before us on our computer screens.

 Is this necessarily a good thing ?

    Take the following fictitious example. 

Fred comes into 100000 dollar inheritance, he decides to invest it

on the sharemarket. He reads the posts on the shareforum etc

and decides to buy 4 shares in four companies at 25000 dollars each.

Intending to hold them for the long term. Lets say he buys Frucor,

Telstra, waste management and Wrightsons.

    After just a few months Frucor shares take a plunge, now this supposed

long term holder is suddenly being bombarded with negative comments

about the company. He then sees all the chatters are recomending buying

Rubicon, before you know it hes switching his stock. The supposed long term buy

has lasted only a few months. Then one of the other stocks has a temporary

 setback and he is changing his portfolio again.

      Sound familiar?  Which ever shares you hold there always seems to be another

that looks more attractive. I suspect that many people would be much

better off financially if they just stuck to their present portfolio

and forgot about it for five years.

          Remember shares like pets arnt just for christmas

 

 nick