It was John Templeton and that was second world war.
http://www.traderji.com/fundamental-analysis/88510-penny-stocks-sir-john-templeton-style.html
http://www.traderji.com/fundamental-analysis/88510-penny-stocks-sir-john-templeton-style.html
suzlon energy - hold or sell?
- Thread starter hardik05
- Start date
This is a problem with people in stock markets .Read some success stories and viola its easy to become market wizard , while Mr. Templeton did invest 100 shares in each stock below 1 dollar on the nyse .. he was not a idiot gambler in doing so... he didnt think he was the smartest person on earth for doing this ... he was a pure fundamentalist who understood probabilities above all .
In 1929 the stock market crashed 90% which basically meant that even companies with good fundamentals came down to cheap levels ,big companies like ford and crysler became penny stocks ... although he was pure fundamentalist he was not a dumb trader who relied on fundamentals only to make decisions so he went with the probability that most of the companies might go down but sure some will rise.
This is a pattern which maybe happens max 2 times in a persons lifetime. One cannot pick random penny stocks out of the blue and fit in the strategy .
Suzlon is a company which falls in a strong market and crashes in a weak market and every time it has looked cheaper. tommorow if the stock goes from 5 to say 20 analysts will say they were right but the same analysts would have said the stock was a brilliant buy at 50,40,30 when it was coming down.
This suzlon is a totally different market pattern then what templeton did that is buying when everything was oversold.
So Templeton infact did brilliant Fundamental Analysis and not smart work as people would think. The average public always thinks that this was pure luck.
In 1929 the stock market crashed 90% which basically meant that even companies with good fundamentals came down to cheap levels ,big companies like ford and crysler became penny stocks ... although he was pure fundamentalist he was not a dumb trader who relied on fundamentals only to make decisions so he went with the probability that most of the companies might go down but sure some will rise.
This is a pattern which maybe happens max 2 times in a persons lifetime. One cannot pick random penny stocks out of the blue and fit in the strategy .
Suzlon is a company which falls in a strong market and crashes in a weak market and every time it has looked cheaper. tommorow if the stock goes from 5 to say 20 analysts will say they were right but the same analysts would have said the stock was a brilliant buy at 50,40,30 when it was coming down.
This suzlon is a totally different market pattern then what templeton did that is buying when everything was oversold.
So Templeton infact did brilliant Fundamental Analysis and not smart work as people would think. The average public always thinks that this was pure luck.
What are you trying to say? and suzlon is a speculative buy, I've mentioned that enough time. and ofcourse you don't randomly choose penny stocks, fundamental analysis is required. I assumed that you would have understood that much. I dont know what vendetta you have against me. Everywhere your after my hide.
Probability is the exact term here, he didn't do any analysis on individual stocks, but you call it a macro analysis where he timed the market well. Its another matter that it was 1939 and the universe was smaller. Try it today and you will have some 1000+ penny stocks 
, so just that strategy of buying all stocks under 1$ was not going to be very easy.
, so just that strategy of buying all stocks under 1$ was not going to be very easy.
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By default you are a angry kid who thinks the whole world is against him to get him. you also seem confused first you said "Thats being smart. Its not even vaguely related to fundamental analysis" now you say "fundamental analysis is required".
Dont worry that fight has been long forgotten (but if you want to remember it was about my friend who went long pharma and hospitals years back using his fundamentals which you thought was common sense and now you are trying to do the same but against trend because its a penny stock just giving it a fancy name speculative )
Speculative by the way means people who are not hedged with open positions in stocks so even pure fundamental traders with open positions are being speculative.
The previous post was for my considerate trader friends like hauler who is trying to improve his market trading/investing by trying to learn different methods and takes feedback in a humble way rather than being arrogant. Arrogant people always loose in stock market.
Dont worry that fight has been long forgotten (but if you want to remember it was about my friend who went long pharma and hospitals years back using his fundamentals which you thought was common sense and now you are trying to do the same but against trend because its a penny stock just giving it a fancy name speculative )
Speculative by the way means people who are not hedged with open positions in stocks so even pure fundamental traders with open positions are being speculative.
The previous post was for my considerate trader friends like hauler who is trying to improve his market trading/investing by trying to learn different methods and takes feedback in a humble way rather than being arrogant. Arrogant people always loose in stock market.
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See, The guy did'nt fundamentally analyse every stock he picked up. He knew that the market was well below value. THAT was fundamental analysis I was talking about. And I was just pointing out the benefits of accrual diversification of risks. Nothing else. And there is a huge difference between investment and speculation. If you ever picked up security analysis its in the fourth chapter. Things recommended for investment and those ALLOWED for speculation are different. Fundamental analysis is not just one type of analysis. Its as diverse as technical analysis, where some look at candle chart patterns, some trend line cross overs, some at algorithms, some at volume and price action. Yaar ek single cheez nahi hai. Fundamental analysis mein there are growth investing, value investing, dividend invest, dividend growth investing. Uske under mein bhi there are more ways to do each of it. There is an option of how microscopically you want to look at an enterprise. Trust me my friend, everything apart. TV analysts nowdays are nothing compared to private fund managers who have a stake in their funds. TV vaalon ka kya hai, people demand an opinion from them on every single thing every single day. Thats not possible for us fundamentalists. Most of the time TV analysts bakwaas karte rehte hain misleading investors. I can't even comment on the short term future of the stocks I hold! I've said my heart out now. I respect all traders. But fundamental analysis is for those people who make investments and build wealth in long term, not trade for their bread and butter. Yeh TV vaale analyst ko dekh lo, SP tulsain (so called fundamental analyst of TV18). Every day the guy is giving some kind of buy and sell on TV and he even has comment on the short term of nifty! I mean these are the kind of people who taint the name of fundamental analysis.
Look buddy I understand you have passion for the markets (i can make out just by the 2.30 am replies only crazy passionate people ultimately find success in the markets) . What you have to understand is even bad things can be turned into positive. Tulsian is indeed the biggest joker in the pack he is there for entertainment he knows some facts about all companies but wont have a clue about where the stock is going in the next 5 minutes forget the next 5 years these guys are there for entertainment , the only guy i take seriously and idolise is Sukhani he is the only real trader in there. I use cnbc to do opposite things if they come out with the story and the stock is already up 10% i mostly tend to short sell it making money most of the times.
there are many ways people make and loose money in the stock markets. If you look at the history of stock market wizards they are not great fundamental or technical analysts(in terms of theoretical knowledge) . But they are great psychologists who understand crowd behavior and that is the main reason y they succeed . They have powerful observation capabilities in patterns and they use them to make profit. they care less about theoretical technical and fundamental and care more about actually making money. There is no place for arrogance and ego in the stock market it efficiently cleans out such people people who are willing to learn and keep an open eye towards finding new patterns and ways to profit are the only people who ultimately survive in the market.
only crazy passionate people ultimately find success in the markets) . What you have to understand is even bad things can be turned into positive. Tulsian is indeed the biggest joker in the pack he is there for entertainment he knows some facts about all companies but wont have a clue about where the stock is going in the next 5 minutes forget the next 5 years these guys are there for entertainment , the only guy i take seriously and idolise is Sukhani he is the only real trader in there. I use cnbc to do opposite things if they come out with the story and the stock is already up 10% i mostly tend to short sell it making money most of the times.there are many ways people make and loose money in the stock markets. If you look at the history of stock market wizards they are not great fundamental or technical analysts(in terms of theoretical knowledge) . But they are great psychologists who understand crowd behavior and that is the main reason y they succeed . They have powerful observation capabilities in patterns and they use them to make profit. they care less about theoretical technical and fundamental and care more about actually making money. There is no place for arrogance and ego in the stock market it efficiently cleans out such people people who are willing to learn and keep an open eye towards finding new patterns and ways to profit are the only people who ultimately survive in the market.
Moeny control pe people make fun of sukhani. I dont know why because I dont follow short-term market unless I want to enter or exit a position. I am a dividend growth investor. I buy companies that have consistently increased their dividends. So I'm mostly concerned about my dividend return and not by the price swings in my holdings. I personally would not even have touched FINTECH or SUZLON. I can firmly say that dividend growth investing is the most conservative type out there. But in long term it outperforms all other styles, as dividend income itself is very heavy and capital gains always come up aswell. A stock that doesnt pay any dividend has a value of 0 for me. And dividend growth investing adds two more parameters to be researched. Finding potential multibaggers is more easy than what I do. (Most of the candidates get burned). A guy a few months ago said that "people who cant make money in the markets settle for dividends, saying angoor khatte hain". I was laughing deep down inside when my dividend income alone is over 15% Every now and then when the market falls I buy myself a money printing machine and watch it grow in value and print out more money every year. I do make mistakes sometimes and they cost alot.
I dont know why because I dont follow short-term market unless I want to enter or exit a position. I am a dividend growth investor. I buy companies that have consistently increased their dividends. So I'm mostly concerned about my dividend return and not by the price swings in my holdings. I personally would not even have touched FINTECH or SUZLON. I can firmly say that dividend growth investing is the most conservative type out there. But in long term it outperforms all other styles, as dividend income itself is very heavy and capital gains always come up aswell. A stock that doesnt pay any dividend has a value of 0 for me. And dividend growth investing adds two more parameters to be researched. Finding potential multibaggers is more easy than what I do. (Most of the candidates get burned). A guy a few months ago said that "people who cant make money in the markets settle for dividends, saying angoor khatte hain". I was laughing deep down inside when my dividend income alone is over 15% Every now and then when the market falls I buy myself a money printing machine and watch it grow in value and print out more money every year. I do make mistakes sometimes and they cost alot.| Thread starter | Similar threads | Forum | Replies | Date |
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