The closing line was bull's eye. "Dont Get Greedy". Infact this should be the first principle to enter the market. This is a view held universally by all the intelligent investors and analysts. Years of experience has humbled the finest brains of share markets. The key lies in investing with a long time horizon, focussing decent & steady growth.
To give credit to some of the analysts, they do preach and practice tha same. There were several examples quoted when analysts went wrong. But please remember, nobody is God. Before discrediting the analysts, we must find out what percentage of time they have been right. In stock markets if you are rigt 40% of times you are on the path to be a Warren Buffet.
RE:Quantifying speculation
by Shreyash on Aug 26, 2005 11:17 AM
I didnt get you. Can you please elaborate how Ask price <= 5 * BPS will help or whats funda behind the theory, similarly for Market cap. What we need to see on these two parameters.
Let us think logically. Anyone who buys and sells stocks is doing it only to make money. If I know a good buy, what would I do? Would I first buy it myself or would I tell others to buy it? Obviously if your tip is genuine, you stand to gain much more by buying the stock rather than telling others to do so. That is why I do not trust these tipsters. It is clear that they first buy, then advice others to buy to push up the price and then book profits, leaving you holding the baby.
