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A great explanation SNOOPY. It seems warrens way is more or less my
way. I might not be as thorough as warren but in my own little way I tend
to follow his methods. I use charts to see where a share is coming from
but thats it, my buy and sell points come from my own judgement not Mr
markets wild forecasts as you would get from a chart.
Mr market is
unpredictable and common sense is the best thing to use to beat him.
The thing we all strive for is working out today what the best investment
is for tomorrow. Some people do more harm than good by trying to
complicate it to much where as the poor old mum or dad investor thinks its
all above them and dousnt invest in the market at all. I look at it this
way I am up against a lunatic and have to out think him. I was
convinced of Mr markets lunacy in Aus when I saw Poisiden shares start at
50 cents top 135dollars and plunge back to zilch. The other classic was
Apollo mining would rise and fall 5pc with the rockets going up and
down. Cer was a share I was interested in at one stage so I
did some homework on it. Compared to roundup which I use a
lot, it costs about double, works ok, but not for commercial growers
uneconomic I found. I devide the market into sectors, then pick the
best two in each sector so that if a sector is making a comeback, I back
my companies pretty well regardless of entry price. I hold as long
as it takes could be years or weeks. My exits come when I think
thats the end of the run the sector must drop. The farm sector is
out along with transport in my reckoning with service and retail in.
The power sector is the one to pick at the moment big changes and turmoil
on the horizon a few traps set for young punters and prizes for the
lucky. Pwc is a company Im doing some homework on at the
moment has been on a long down trend for ages cant go much lower prospects
look good If they consolidate and stick to the knitting. The
gas might be a worry but thats down the track a bit. Any one any
info on that I need a second opinion.
CHEERS MACDUNK. |
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