NTU 5.00% 2.1¢ northern minerals limited

Warren Buffet might be helpful to those wondering about...

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  1. 5,580 Posts.
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    Warren Buffet might be helpful to those wondering about yesterday's price surge:

    Buffett explained, it's as if a moody farmer lived next door and shouted prices at you all day. How much he'd buy your farm for, and how much he'd sell his for. The point is that while the farmer's prices may go up or own, the earnings potential of the farm remained intact.

    Therefore, if you truly understand the business you're investing in, the mood of the farmer only matters if he's selling his farm cheaply, or offering to buy yours at a premium. So for investors everywhere, the next time you get caught up in market fluctuations, just imagine you're being yelled at by a moody farmer -- and if that visual doesn't calm you down nothing will.

    The divestees want to exit at the best price possible. Yesterday's price action where a mere $740,000 in stock changed hands is an attempt to reset price expectations in their favour. They have a lot of stock to move and 42 trading days to do it. Beginning the process with a plump price is good commercial logic.

    Do not be seduced by this market manipulation.

    If I were a shorter, I'd hop into this golden opportunity.

    Ash
 
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