Eggs

27 July, 2007 (14:08) | Journal | By: Colin McGinley

There was a certain element of serendipity in play for me yesterday evening.

After having just written about value investing in my last post, it was perhaps unsurprising that the guest writer in yesterday’s Daily Reckoning newsletter wrote about Philip Fisher, one of the originators of value investing.

While the article was more to do with how MorningStar has misrepresented some of his teachings, I found the following quote on MorningStar’s website to be in tune with my changing mindset:

Spend time thoroughly researching and understanding a company, and if it clearly meets the 15 points [Philip Fisher] set forth, you should make a meaningful investment. Fisher would agree with Mark Twain when he said, “Put all your eggs in one basket, and watch that basket!”

Again, it’s just driving home the importance of focus, of thoroughly understanding the market that I’m actively trading and making the absolute most of the opportunities on offer.

I’m watching those eggs like a hawk!

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Comments

Comment from fxmc
Time 28 July, 2007 at 9:01 am

Hello Colin.
I have been following your journal for some time and i must say it,s very well organized and informative.
I read Du Toit about 2 years ago and still have his grid on my charts today.I dont follow trading forums
very much but i see you have been looking at the Jacko method and i guess you are looking for some new
ideas on managing risk reward i know Du Toit can suffer serious downside.The only other analysis i use
is gleaned from Mark fisher,s book The Logical Trader and especially the three day rolling pivot range.
It works very well in trending markets as a trailing stop i also use it as part of my entry strategy.
If you have not come across it before mail me and i will send you the formula.I am not a pro trader
and have no vested interest in one system over another.Just saying hi and keep up the good work.
Regards.

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