I understand all that, so I guess my basic question is this "if THQI is the same company today as it was 2 months ago, which I believe it is, then what's with the extreme price flucuation in that same period"?
The fact remains that volatility is much greater than it was 20-30 years ago, simply plot a chart of any major index along with a reliable volatility indicator for proof of this fact.
So, to the investor that bought into THQI about two months ago, or to the long that averaged up at that time, what do you tell them? The fundamentals looked as sound then as they do now, but for that person, they must begin their investing career 50% in the hole. If this is not justification for doing a little T/A before making an investment, I'm not sure what is.
Like you, I believe in fundamentals as the basic driver of business, but I think it is quite fair to say that trading and volatility today make the concept of long-term holding much more risky, much harder to implement, and much more a function of rational investing balanced with T/A.
I guess that is my point, and for any longs that entered their position 2 months ago, I bet it is fair to assume they may feel the same way.
Anyways, I know what you're saying Kory, and in principle I totally agree, it just doesn't seem to be the principled game it used to be, which is jsut another way of stating my case.
Regards, JB |
