nothing to do but wait, page-48

I posted my view on FA previously on this thread. Whilst I don't believe the market is always right I think many investors fail because their analysis is wrong. Thus they buy at 40c and the fundamental picture will change or they were overly optimistic in their assumptions.

"Using fundamental analysis you can place a value on a company. If I value a company at $1 based on it's market cap then i'm happy to buy it for 50c. It may drop to 40c which means nothing if the fundamentals remain unchanged. My reasoning is that the market will at some stage value the company at it's true worth (if I am correct of course).

If the market is always right then it makes it extremely hard to make money - after all i'm simply buying a share which is valued exactly at it's true worth."

TA proponents simply can't accept that a share price might fall 10% and holders don't care as long as the fundamental picture remains unchanged.