Forum Archive Index - October 2003

["David & Jill Stevenson" <djstevo@quicksilver.net.nz>]

Partial agreement. However some companies lend their activities  better to FA  analysis than others. A conventional trading company that lacks charisma ie. does nothing but trade and organically grow does not offer an investor opportunity to capitalise on better knowledge than another investor simply because it is so predictable . All it will do is , predicable to the day, produce market information eg 6 monthly trading reports or ,as a spark of interest ,advise it has sacked it`s CEO Even that  latter act may create a market heart murmur .However nothing to compare with the frequent market moves of say  a swashbuckling GPG. and those moves can be anticipated by the investor if he is astute and recognises timing or when an idea has it`s dayThat company has surely proved itself over the years by it`s results. Okay I can`t bolster my argument by saying the  market is full of investment companies lending themselves to FA. But in FA you don`t need a multitude of companies . I accept TA has it`s place  and it`s merit but, philosophically ,TA and FA are totally different realms. Each individually caters for differing temperaments in the investor. Both have their merits . It depends whether you want romance or drama.  It may appear a worn out hobby horse of mine but an investment company is designed for the FA investor . He will invest longer term than a TA and in larger amounts to compensate for infrequency of transactions compared to the TA.and  will receive dividends and  is assured of annual bonus issues to further compensate even if nothing else happens... .TA traders operate very much in the short term as opposed to FA who should not  invest unless they are thoroughly familiar with a target company  inside out if they are going to stick with it.. One would never guess that GPG is a hobby horse of mine. It`s activities suit my nature to a T.

                                               Regards

 

                                                              David S.