Forum Archive Index - August 2001

[jerrold poh <pohj@ihug.co.nz>]

> Different again is the question: 
> "Should you invest in the best company?"
> Since I am using a five year performance time horizon, the fact that 
> Baycorp might be the best should be of no surprise to anyone.   It is 
> very likely that a lot of this 'bestness' is already built into the 
> Baycorp price.  So purchasing the 'best' company can be quite risky 
> if you pay too far over the odds for it.

Maybe this has already been said, but New Zealand isn't really the best
place to purchase companies exibiting "bestness" qualities.  

Reason being is that we don't have alot of these companies (what with
our small market and all), and everyone (including big institutions) are
always keeping an eye on them, just waiting for the right time to snap
them up at "bargain prices", giving small time investors like us little
or no chance at all to pick a few of these up when there's the chance

What's been really interesting me atm is the small cap stocks (read, not
penny stocks) posted on the fool's website (www.fool.com), and the way
that big institutions don't touch them (being that any purchases they 
make would severly upset the stock price), which could be a way in for
us small investors to make our profits.  


> "Q: If you call a dog tail a leg, how many legs does a dog have?"
> "A: Four.  Calling a tail a leg doesn't make it a leg."

Anyway, on a different note, the above statement has been puzzling me
for awhile, and has taken me longer to figure out than the Phaedrus
mystery but I think I've got it :).  

I don't suppose it has anything to do with Abraham Lincoln :).



Jerrold.


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