i think the main point of my post was missed, i
wasnt trying to run down T.A or start another T.A v fundamental
debate. What i was trying to put across was that my returns have
suffered since discovering the internet and the stock forums.
I am not trying out a new method, simply
going back to me old one, ie buying quality and holding it. I think one
area that the internet/ computers is affecting life is that it is speeding
everything up. This isnt necessarily a good thing. Its now so easy to buy
and sell shares and there are so many people advocating different approaches and
different stocks that it is all too easy to be switching in and out of stocks on
the slightest dip or negative sentiment.
I actually believe the best
method is to use eyes and ears to see what the people on the street like to
buy. This has lead me to buy Montana, Restaurant brands, Frucor, Sky city
etc. I bought wrightsons for 45cents when i heard farmers in ashbuton were
starting to buy equipment . Basically if you buy stocks that make money,
with products people like its hard to go wrong.
I would never have bought the
likes of ITC if i had not spent time on the forums. These are the type of stocks
that have started to hurt my returns. Did i really by aquaria 21? if you
just buy quality stocks that make money and are not cyclical, technical or blue
sky then it is hard to go wrong.
This is the reason i have
now sunk my trading portion of my account into the warehouse. I dont need to
check the stock price, just need to look at the queue at the mall just before
opening to see my investment is good. Dont need a uptrend, moving average
or spastic stochastic to see that the warehouse will give me a good
Somebody was saying you
have to invest heavily in time, books etc whether T.A or fundamental , i
disagree, for the average investor/ would be trader i think less is more.
The more you chase wealth the more allusive it is. Better to buy a
quality stock and wait for wealth to come to you.
i sell the Warehouse, maybe never! unless there is a fundamental change in
the company and it starts to go into decline then i will not sell.
Frucor was a
case in point , i bought this stock with the intention of holding, and it was
only the forced takeover that prized my shares away, i still believe the offer
was way too low and notice that V seems to be as popular as ever.
There has been
talk about how much people should diversify, until i went online i only
held four stocks, they were all long term and doing well, after being on the
forums a while it made me itchy to buy some of the stocks people were raving
about. I sold one of my core four stocks and split it into smaller amounts so i
could have more pieces of cake. Looking at returns this strategy did
not work so well. I will be going back to the approach of having
just two or three quality stocks that are both growing and paying dividends.
The key point is that when i am out and about i
will be able to see how the stocks are doing by the popularity of the products.
When i owned frucor i would frequently ask shopkeepers how sales were going, i
will now be taking a similar interest in the warehouse.
Imagine trying to
find out what aquaria 21 or ITC were up to.