I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday 30 May 2010

Fundamental or Technical Analysis? - Revisit

Fundamental or Technical Analysis?

By visiting investment blogs, some time I really get entertained by some retail value investors trying to convince others how they have done their wonderful works of deep fundamental analysis while forgetting what their Grand Master towards to the end of his investing life said:  A Conversation With Benjamin Graham

Technical or Fundamental analysis

One uses technical indicators and charting to forecast the stock price movement while the other one uses financial ratios, understanding businesses and attending AGMs to judge the quality of the Management and by asking the Management a few questions here and there to justify their investment decisions.


Technical or fundamental analysis are both guesswork and speculative in nature and the final results of such analysis are never certain and often lagging in nature.

The future of any company can turn unexpectedly in short time due to the external circumstances far beyond the control of the company and often the Management of these affected businesses will shut their mouths for as long as possible. Some may even deny it outright.

1 comment:

  1. Hi CW,

    Actually i read somewhere before, that this is where Graham and Buffett differs. Graham believes that you should sell when you hit a certain predefined target price. Whereas Buffet believes that you can earn more by holding on to the stock perpetually, as long as the fundamentals remain sound.

    So while both advocate value investing, they differ on their take on when to sell.

    ReplyDelete

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