As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

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

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

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

Saturday, 9 January 2010

FA or TA or Both? Who will really win? Case Study

"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill


"When the tide comes back, you will soon find out not all boats rise high." - CreateWealth8888

I keep hearing people debating on FA, TA or combined FA and TA and who will finally win the race?

Let us watch an amazing race in 2010 ...




Who Will Really Win?

On left    : Mr Tortosie - Strongest FA that I can find.
On right   : Mr Hare      - TA the Chartist  .................

Mr Tortoise sold EZRA @ $2.05 and Swiber @ $95.5 to Mr Hare and bought MTQ @ $0.685 and GRP @ $0.20

Result of 1st Race: 8 Jan 2010

EZRA: Closing @ $2.36, + 15.1% to Sold Price vs GRP: Closing @ $0.22, + 10.0% to Purchase Price
Swiber: Closing @ $1.18, + 23.6% to Sold Price vs MTQ: Closing @ $0.74, +8.0% to Purchase Price

To be fair as Mr Tortoise is a high dividend yield player. No dividend No Play. Ok lo, let us add 25% entitlement of the total 10% dividend yield at each race.

So we adjust MTQ and GRP for 25% share of annual dividend yield of 10%:

EZRA: Closing @ $2.36, + 15.1% to Sold Price vs GRP: Closing @ $0.22, + 12.5% to Purchase Price

Swiber: Closing @ $1.18, + 23.6% to Sold Price vs MTQ: Closing @ $0.74, +10.5% to Purchase Price





Race 2 Re-match starts on Monday, 11 Jan 2010 ....





Place your bet, who win Race 2?


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