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Re: [sharechat] The Back Door

From: "Brent Wheeler" <>
Date: Thu, 23 Sep 1999 10:52:39 +1200


One way of thinking about this (which can be horribly pessimistic) is to
subtract the "round turn", ie buying and selling costs of brokerage in %
terms, then what you spend annually on magazines (net charges!!!) and the
like from your desired ROI.  This all makes up the "1st third" in my money
management rules for exit.  It is surprising sometimes when you look at
overall transaction costs just how much they impact.  That, in a way is the
slight delusion of the "McKewen 233" (if I [or he!] may be so bold) - they
all overlook the transaction cost problem (let alone liquidity and slippage
in these smaller stocks).

An assessment of acceptable ROI after costs have been accounted for makes
for a sobering assessment.  Forgive the "bad news Betty tone of this but it
is the reality.


Dr Brent Wheeler
Brent Wheeler & Co. Limited

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