Evan McQuire is a great guy and I really enjoyed meeting him and chatting about the share market. He has a brutally honest view of shares and investing:
"A share doesn't have emotions, it doesn't have feelings, it doesn't care who you are"
Too often investors buy a share and if the price goes down they hold on for far too long. They have a bias about not wanting to be wrong. "It's a top 200 company!" "It's been around for 100 years!" They cry.
"If you want a guarantee go and buy a fridge at Harvey Norman"
It's so important to do your research. The view you take of a particular company has to be based on solid evidence.
"Have you done the right due diligence on the company that they're investing in - have you been tracking the price action for the past 12 months?"
There's plenty of company information around to make an informed decision. Look at the annual report and the fundamentals. What's the P/E ratio? What news is there around the sector and company? Are there any threats to the cash flow?
What we learn in this episode:
- Avoiding "Single Stock Shock"
- What analyst ratings mean
- The difference between fundamental and technical analysis
- Going "long" and going "short"
- Watching out for "falling knives"
Evan can be contacted via his website www.mfam.com.au. Make sure that you mention this podcast when you say hi.
Evan & Phil in soft focus in the Garden Studio
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.