nirvana for long termers, page-9

Slats,

Now many times have we heard that old chestnut wheeled out, "Mr Market is always right". It seems that those that say it probably haven't seen Mr Market in its native confused environment.

The Mr Market that I know is a paranoid, bipolar, irrational sheep. Mr Market runs and hides upon unfounded rumours yet often stubbornly ignores the facts when presented. Mr market constantly follows the crowd even though it usually has no idea where the crowd is going. Mr Market likes fads irrespective of how irrational they are.

Last year Mr Market sold SSN for less than 2c then offered to buy them back for more than 20c shortly after xmas. This year Mr Market got into a flap and started panic selling OAK for 22c and only weeks later wanted to privatise the entire thing for 52c. Mr Market was clearly right when CDU was trading at around $5 last August and apparently still right then CDU was trading 75% lower the same month. Mr Market demanded a resource upgrade and now it has one still doesn't know how to read it.

I suggest that Mr Market is usually wrong. Why else would it change its mind so often ? Mr Market changes direction more often than my missus uses her credit card.

Maybe you know a different Mr Market to the one I do. Personally I rely upon the fact that Mr Market is so often wrong. Like most of you I make profit from the fact that Mr Market will inevitably move from one wrong position to another wrong position. We buy when Mr Market fails to see the potential and we sell when Mr Market overvalues it. I for one hope that Mr Market never gets it right, just so long as it keeps changing its mind.

No offence intended to the Mr Market of Geelong, Vic. I'm sure you are nothing like this.