Well ®§ammy€, I long ago learned that individual investors will use whatever investment strategy and/or system that particularly appeals to them, and are unlikely to change their approach to that of someone else.
If, or when, they do change, it’s often because their own experiences have convinced them to do just that, and not because of the recommendation of others.
Therefore when I comment on stock selections or strategies I tend to do it from the standpoint of my own opinion, which I try and support with figures and, hopefully, logic. I will always welcome constructive debate and discussion.
From what you’ve said in your replies, it’s unlikely we’ll agree on the relevant importance of a company’s Financial Fundamentals.
Speaking for myself, I’ve been down both the roads of Technical Analysis and Fundamental Analysis, and from my own experience have come to the conclusion that it’s the Fundamentals that ultimately drive a stock, and it’s the Technicals which can, at times, reflect it.
In closing, you referred to several comments of Warren Buffett.
Well .... here are a few more ....
1) 'Ignore the Macro, and focus on the Micro'. In other words, don’t spend too much time concerning yourself with the fate of the stock market or the economy, over which you have no control.
2) 'Ignore Stock Market Forecasts'. One should stay at the Company level rather than the Market level, and focus on the performance of an individual business, rather than to be distracted by larger trends which are often impossible to forecast with any degree of accuracy.
3) "If history revealed the path to riches, librarians would be rich". Here he was referring to the EMT, i.e. the Efficient Market Theory, upon which Technical Analysis heavily relies, and which supposes that a share’s price is where it should be because all the pushes and pulls in the Marketplace. Well .... maybe, but, IMO, not always.
Regards,
bruwin |
