TShirt-condolences. One of your points that you regard as essential in your decision making I regard as catastrophic so I thought I'd share.
Forming a relationship with a company director.
This is something I used to do years ago and it took me many years to adopt a counter intuitive stance and discard it as dangerous.
The first problem is that any psychiatrist will tell you we all believe our character judgements to be sound, yet we are all poor judges of each other. Much research has proven this again and again. It takes mindfulness and education to do this well yest we just run on "our gut" which is ok but utterly fallible.
The main point though, and this has been shown through a pulitzer prize winner (though I forget their name) in economics, is that the information disseminated by boards on future prospects is horribly inaccurate and the reasons are quite prosaic and obvious- 1/They are overly optimistic because that is human nature and they imagine better lives through better compensation from the companies success 2/ Their job is to promote and if they were to deliver downbeat assessments they would be answerable to shareholders. I imagine the culture to be very similar to HC and the way bears are treated in stocks that are rallying.
Since stopping this terrible habit my use of data is simplified and my reliance human foibles lessened. I take the market and its releases mostly on face value and it is very effective.
You should make a careful analysis of what exactly you "learned" from this relationship or did it just make you feel good about your own assumptions? I'm sure your contact is gutted to, if not more so by the way- its a tough game
NEN Price at posting:
7.5¢ Sentiment: None Disclosure: Not Held
