Forum Archive Index - May 2002

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

Ok, but my point is you can do it without charts and much faster. Once you have 
calculated all the ratios and net asset per share you come up with a target 
price that 
you will buy in at - not a trend, not a particular chart formation - the only 
thing, 
particlarly in NZ is to be aware whether there are enough shares available 
without
forcing the price up so it may take a number of days to get in. 
A target price is something you can act on instantaneously without having to 
run any 
programs, produce any charts.
You're quite happy from your previous calculations and if the price goes down 
then
you buy in more if you can afford to.
Of course your buying, particularly in NZ, is likely to produce chart 
formations which
tell chart ridden punters to buy - and at too high a price but that's their 
funeral.

The only alert system needed is up to date monitoring of real news and the 
latest 
prices and volumes.

cheers,
Hugh
----------
> From: Phil Boeyen <pboeyen@sharechat.co.nz>
> To: sharechat@sharechat.co.nz
> Subject: Re: Re: Re: [sharechat] AUO Chart/Phaedrus
> Date: Tuesday, 7 May 2002 9:07
> 
> Hugh
> 
> Although Buffett may not use charts per se, he does - from what I
> understand - work out a value for a company and when that price is reached,
> he buys in.
> 
> I find it hard to imagine that he doesn't have some kind of alert system
> which would inform him whether a particular share is heading towards a price
> which he would consider good value i.e. some kind of chart.  In this way he
> would naturally be ready to pounce/do a deal when the share hits his value
> range.
> 
> However I have not read anything specific about this.  Perhaps someone else
> who has studied value investing in a little more detail can enlighten?
> 
> Cheers, Phil
> 
> ----- Original Message -----
> From: "hugh webber" <hugh.webber@clear.net.nz>
> To: <sharechat@sharechat.co.nz>
> Sent: Tuesday, May 07, 2002 6:58 AM
> Subject: Re: Re: Re: [sharechat] AUO Chart/Phaedrus
> 
> 
> > I'm laughing. Warren Buffett doesn't use charts, neither does Ron
> Brierley.
> > A fundamentalist spots opportunities from analysis of the data without
> needing
> > to change it into charts first and descend into crypto-religious mumblings
> about
> > wedge shapes and head and shoulders and candlesticks.
> > But don't let me spoil your fun ;-)
> >
> > ----------
> > From: Capitalist <capitalist@paradise.net.nz>
> > To: sharechat@sharechat.co.nz
> > Subject: Re: Re: Re: [sharechat] AUO Chart/Phaedrus
> > Date: Monday, 6 May 2002 20:55
> >
> > Gerry said:
> >
> > >It does show fundamental investors need to read Charts together with the
> supplied data. Not to do
> > so >may lead to wrong conclusions and cost money: you could have been put
> off by a Chart of  what
> > could >be a splendid investment.
> >
> > I beg to differ. No true fundametalist would be put off by a chart.
> >
> > Phaedrus said:
> >
> > > what I have presented is indeed an oversimplification of what is a
> > >complex situation. I would argue that this is true of any chart...
> >
> > This is sophist argument ie my chart provided all the information, you all
> are just too dumb-ass to
> > be able to interpret it. Yeah right.
> >
> >
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> 
> 
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