Steve, Thanks very much for your reply. I am not a big fan of Technical Analysis either, however I find it useful to look at long-term charts. It is just another form of information about the company, and is useful at the very least in deciding what not to buy. A stock that has done well over the last 10 years or so is more appealing to me, and a long term chart is the easiest way for me to notice this. I also think a long term chart reflects on the quality of management to some extent and gives one a sense for how volatile the stock may be in the future. Lastly, I think it can help one deal with the emotional side of investing a bit, by putting things in perspective with the past.
I agree that fundamentals are the best tool for a long term investor. However, with technology companies it is more difficult to predict earnings several years out, because there is so much change going on. Partly for this reason, I use a simple approach and bet mostly on management, the basics of the business, and technology trends. I am fairly risk tolerant, and I hope that will give me an edge in picking up quality companies when they are out of favor.
Regards,
John
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