What is your buying process? From research to actual purchase

[Ves]

I grant that I may have undermined my main point in doing so, but felt that it would be remiss for me not to highlight to newcomers that many of the successes claimed by the fundamental investors of yesteryear probably won't be replicable given the current economic climate. Having said that, I must also concede that many from the technical analysis camp are similarly challenged.

I would say for those with a longer time horizon, who have the patience and foresight to wait out any price volatility, and possess the knowledge to identify quality business assets, it has been very achievable in the last few years and will continue to be!. High equity risk premiums effectively give investors more purchasing power for each dollar invested. You may not see much movement in price multiples in the short (or even medium term) but in the longer term I think the results will speak for themselves.

I would argue that the economy does not have to grow at a rapid pace for a quality business to increase its earnings (they can increase market share etc).

 

[craft]

Craft,

Yes! There is a glaring hypocrisy in my previous post!

I simply couldn't resist the urge to give the pendulum a decent swing in the opposite direction after an earlier poster got up my nostrils by condemning the works of a popular author.

I grant that I may have undermined my main point in doing so, but felt that it would be remiss for me not to highlight to newcomers that many of the successes claimed by the fundamental investors of yesteryear probably won't be replicable given the current economic climate. Having said that, I must also concede that many from the technical analysis camp are similarly challenged.

I'll probably make myself unpopular by saying this, but, I believe that technical analysis is, in truth, just another style of fundamental analysis! Like fundamental analysis, technical analysis also seeks to gauge the strength of a trading prospect via examination of data. The datasets employed may be different but the goal is still very much the same (i.e. to invest in more winners and weed out more of the losers.)

Cynic

I’ll jump into the **** with you in saying there is absolutely no difference in what it takes to make fundamental or technical successful.

You have to be able to take on risk exposure when it’s priced in your favour. TA does it by setting boundaries around how they will react to price action. FA does it by setting boundaries around how they will react to business performance.

Once you have a sound basis for positive expectancy - the rest is process. Both methods need the process to be business like or they will fail.

I am probably thought of as against TA because I now use FA and have countered some arguments against FA. - But that’s not the case.

many of the successes claimed by the fundamental investors of yesteryear probably won't be replicable given the current economic climate

Since 2007 has been the best market for stock selection that I have encountered so far.