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SGH

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54.5¢ slater & gordon limited

Bearing Fruits- More Lemon?, page-136

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Dr.Who

4,679 Posts.

145

24/09/16

19:20

Post #: 19399028
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Originally posted by Dr.Who ↑

Braintot, you have good reason to have no problem with trading.

There is a paradox in statements from those claiming to be long-term holders and disparaging towards those that trade the stock.

It goes like this. If long term and not interested in trading what impact does the SP have on the long-term holders objective? Absolutely no negative impact but plenty positive. If holding for the long-term it can only be because one believes the SP will offer a good opportunity comparable with other stocks in years to come, therefore if traders are holding back the SP it offers numerous opportunities to accumulate in anticipation of that long-term above average return.

Here's the paradox, a holder might complain that traders hold the stock back yet holding it back is only a positive for a long term holder, the only person likely to be disadvantaged from holding the SP back is a short term trader that is long on the stock.

A long term holder might say well it will never recover if keep selling down. That is incorrect, when the time is right traders and other investors will demand the stock pushing it to its rightful price. If don't believe that will happen then there is no logical reason to hold the stock today.

Trading has nil impact on the long term share price if anything it creates pauses enabling true believer s to buy at a discount.

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P.s I regard myself as a long-term holder and hold an account with shares that I leave tucked away in the cupboard. I do trade a separate account on a daily basis - I call it my manufacturing a dividend account.

Last edited by Dr.Who: 24/09/16

SGH Price at posting: 38.5¢ Sentiment: Buy Disclosure: Held
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