Hi AllyK , a small contribution, if youré interested. Some...

Hi AllyK , a small contribution, if youré interested.

Some people in the UK a while back identified the stock on the London exchange which was the most reliable and predictable when it came to profits and earnings and dividends through thick and thin. Recession proof. It was a business, a chain that sold car parts and auto accessories. Profits rose a modest number of single digits a year etc. It had little debt. Good management. The stock price though went on average through variation of 40 or 50% year on average, from the top to the bottom.

The conclusion was that the price was far more swayed by market sentiment than any objective reality. So this creates opportunity for the contrarian, who buys it when it is selling well below its worth and sells it when or is selling well above, and so on. Sounds simple. But it isn't easy to detach ourselves from the sentiment at any time. if it was it would be a no brainer. This essentially is what is at the core of Buffetts approach. he doesn't live in the big apple soaking up all the emo, he lives in a quiet town in the country and just follows the formula.

You and I know that MLX is likely selling well below the real value. That being said it is a buy signal. When? Often after a double bottom. We have just had one of those. Now it looks like fuel prices are going down as the world oil price moves into new territory with oversupply and weaker demand. This will help the operations at Meekatharra, no doubt.

I didn't sell when the price hit above $1.50. If I had I could now have increased my holding by 50 percent when it bounced twice at about $1. I still am not the master of my emotions. That is one of the keys.