Trading Houston 3

Discussion in 'Share Investing Strategies, Theories & Education' started by DaveJ__, 22nd Jan, 2008.

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  1. Tropo

    Tropo Well-Known Member

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    Warren Buffett Quotes

    Warren Buffett Quotes

    Warren Buffett: Quotes from Warren Buffet


    •A public opinion poll is no substitute for thought.
    •If past history was all there was to the game, the richest people would be librarians.
    •Risk comes from not knowing what you’re doing.
    •Only when the tide goes out do you discover who’s been swimming naked.
    •Look at market fluctuations as your friend rather than your enemy; profit from the folly rather than participate in it.
    •Chains of habit are too light to be felt until they are too heavy to be broken.
    •I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
    •I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
    •If a business does well, the stock eventually follows.
    •In the business world, the rear-view mirror is always clearer than the windshield.
    •It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
    •It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
    •It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
    •Let blockheads read what blockheads wrote.
    •Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.
    •Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.
    •Our favorite holding period is forever.
    •Price is what you pay. Value is what you get.
    •Risk is a part of God’s game, alike for men and nations.
    •Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.
    •The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
    •The first rule is not to lose. The second rule is not to forget the first rule.
    •The investor of today does not profit from yesterday’s growth.
    •The only time to buy these is on a day with no “y” in it.
    •The smarter the journalists are, the better off society is. For to a degree, people read the press to inform themselves-and the better the teacher, the better the student body.
    •There seems to be some perverse human characteristic that likes to make easy things difficult.
    •Time is the friend of the wonderful company, the enemy of the mediocre.
    •We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a ‘romantic.’
    •We enjoy the process far more than the proceeds.
    •We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
    •When a management team with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
    •Wide diversification is only required when investors do not understand what they are doing.
    •You only have to do a very few things right in your life so long as you don’t do too many things wrong
     
  2. DaveJ__

    DaveJ__ Well-Known Member

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    I know a few.... But i am not going to name them so i guess Buffet is correct...:rolleyes:

    By what degree do you measure wealth??


    How are all the 'Fundamental' investors going at the moment??? I sold all my managed funds in Nov07 when the markets technically turned. I have been short ever since...

    My 'Tea leaves' seem to work well for me..
     
  3. The Stig

    The Stig Well-Known Member

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    I'll tell you what else he said last night. The best way for the average person to get wealthy is to buy index funds. He said that twice while I was watching.

    I was surprised.
     
  4. Tropo

    Tropo Well-Known Member

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    Not to worry. ;)
    Possibly :confused: another 643 points (more$less) to go on DOW.
    Keep....$$$miling :D
     
  5. Alan__

    Alan__ Well-Known Member

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    Morning Houston.

    Looks like we'll need to make an emergency decent to about Five-One-One-Zero and see if we can remain in orbit there.


    * DOW down about 1.3% last night and oil at new inflation adjusted high. An indicative fall in the Australian Market today of 60-70 points will give us a new low below the January fall and put us back to mid 2006 levels. Another interesting point is that at new lows we will probably see more Margin Loan exposure and with the rapid rise in Margin Loans over the last few years this must be an increasing factor in market variations. Another interesting few days coming up......
     
    Last edited by a moderator: 11th Mar, 2008
  6. Tropo

    Tropo Well-Known Member

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    Good morning Moonraker,

    Try to maintain an orbit around 5000.;)
    It’s a psychological orbit and if broken down you’ll need a lot of fuel to go back where you are right now.
    Happy cruising. :p
     
  7. bundy1964

    bundy1964 Well-Known Member

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    Don't surprise me he said buy index funds.

    I like indexes in the morning with a clear direction showing overnight, even then they don't always follow the script.
     
  8. Tropo

    Tropo Well-Known Member

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    Xjo

    Well....so far – so good...:p
    XJO hit first retracement level (broke up).
    Two more to go...;)
     
  9. Handyandy

    Handyandy Well-Known Member

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    How about a diagram!!!!

    Cheers
     
  10. DaveJ__

    DaveJ__ Well-Known Member

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    Here is one picture

    Here is a quick picture... I hope Tropo will expand on where his support/resistance lines are...

    Will be interesting if/when the ASX gets back up to around 6000
     

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  11. Tropo

    Tropo Well-Known Member

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    Sorry.... I can not attach any more charts as my limit expired...:confused:
    PS - DaveJ's levels are quite close ....:D
     
  12. Tropo

    Tropo Well-Known Member

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    DaveJ,

    In my view XJO under 6000 is in the bull trap range.
    6000 level is a psychological level. XJO may break it up and pull back again...
    The most important number ( IMHO) is 6135. Above this number I would engage the market (as an investor).
    But again.... there is NO guarantee. Nothing is impossible in the market.
    If you consider going long, make sure that your position is relatively small which may allow you to play with a wider stop.
    Happy trading ! :p
     
  13. Tropo

    Tropo Well-Known Member

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    XJO weekly

    O.K. Problem fixed.
    Attached is XJO weekly.
     

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  14. Tropo

    Tropo Well-Known Member

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    DOW, XJO, Shaghai

    DOW, XJO and Shanghai Copm. Ind. broke down third retracement level (bottom line).
    It does not look good. Interesting times ahead...
     

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  15. Tropo

    Tropo Well-Known Member

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    June 26 (Bloomberg) --
    U.S. stocks tumbled, sending the Dow Jones Industrial Average to its worst June since the Great Depression, as record oil prices, credit-market writedowns and a slowing economy threatened to extend a yearlong profit slump.

    Bloomberg.com: Worldwide

    DOW close = - 358.4
    PS – Possibly another 203/252 points to go (or more) ;)
     
  16. Simon Hampel

    Simon Hampel Founder Staff Member

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    Ouch!

    7%+ cash or 9%+ mortgage offset returns are looking rather healthy at the moment!
     
  17. voigtstr

    voigtstr Well-Known Member

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    surprisingly my Paladin shares have moved up in the last couple of days (unlike my super, navra, and cfs geared share)
     
  18. DaveJ__

    DaveJ__ Well-Known Member

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    Just make sure no one talks about 'Doom & Gloom' because everything is fine!

    :rolleyes:
     
  19. Glebe

    Glebe Well-Known Member

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    I've sold up. Couldn't have timed it all worse really.

    The wife and I decided about 6 months ago that we'd sell our managed funds, whilst paying down the mortgage, and move into our PPOR (which is currently tenented) in July. Well over this period I have sold down each and every managed fund I had, and geez, if I had've done it 12 months earlier I'd be up over $100k. I'm glad I'm young-ish and philosophical otherwise I'd be doing my head in!

    Anyway the good news is that we move into our PPOR in July, and my wife is very chuffed. Happy wife, happy life.

    Next time I enter the sharemarket game my rules will be:

    * never take out a margin loan, because even if you think your buffer is large you may get called (I didn't but I came close!). Borrowing against a LOC is better as so long as you can make the repayments you'll never get called, and the interest rates are lower.

    * invest in very very low MER products like streettracks, ishares, vanguard

    * invest in passive investments that don't buy or sell often (read: buy index trackers), as they're more tax efficient

    * never sell
     
  20. Alan__

    Alan__ Well-Known Member

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    Hi Glebe.

    Ahhh..... the complications of investments. 'Happy wife, happy life'. Not necessarily a normal line found in most investment books but jeez I bet it's common.

    Balancing the risks/rewards of a 'home' and how important this may be in a family structure. What are we willing to 'give up' to achieve these things?

    Your post raises a stack of important points. Some I can relate to, some I agree with and some I strongly disagree with. Unfortunately I have to race out now but I'll try and post later to discuss more. I'll try!

    One point though. Is it really the Margin Loan that's the problem or the LVR that we let it go to? In 'good times' it's common for people to let it go veryhigh, spend the distributions and then thinks things are crook when the inevitable correction occurs.

    Talk later.......