gourv says: "Todays blog of u seems like that of a fundamentalist.words like investment value creating confusion in my mind"
My post dayed 25 March 2009 says this:
How I approach the investment cycle.
1. Identify a stock I want to own if price was much lower (fair price)
2. Wait for a dip, as deep as possible. Sometimes I wait for many years.
3. Buy half of the planned quantity.
4. Wait patiently. if the stock falls and becomes half, i will buy the balance quantity provided nothing else has changed.
5. Stock selection: good managements, share price falls due to business cycles and not due to 'news'.
Investing is different from trading. Stock selection is an important part of investing in stocks, therefore I was explaining why and how I opt for small/mid caps.
Given two long term charts, both making bases and breaking out, how do you choose between them for investment? An easy answer will be to go for both, then cut the on that underperforms. But, that may actually cut off the sleeper, a stock that suddenly wakes up and runs. Trading is our business, we do this for an income, but investing mean the parking of whatever capital we have for safety and appreciation.