funny how some people think...

I find it amusing how some people who call themselves traders or investers or both, look at a stock like FMG. Some say they are conservative or cautious which is not a bad trait to have, a lot of the time. Others like to talk on the forum about how good they are at taking calculated risks and how cavalier they are, happy to have a punt on something either short term or medium.

Some of these people seem to be an enigma, a contradiction.

With FMG, in the really early days, some would not take a punt on the possibility that FMG might get off the ground but preferred to bag the company on the forum. Then when they got a few runs on the board they started to point towards Twiggy's previous track record and continued to bag the company. Then when they get some really big runs on the board and the shareprice moves up, they cry that the price has moved up too far or still too risky or have missed the boat etc.

How safe does a stock have to get for some people who, claim to have a decent risk profile, to want to buy? And then when the risks are all eliminated what blue sky is left? You may as well just go out and buy some of the so-called blue chip stocks.

Companies like FMG are what it is really all about. Investing in the FMG's of the world IS about taking risks. That is why the REWARDS are so good when it goes well. Everyone has to have a risk management strategy to match their profile and being disciplined enought to apply it with a company like FMG is advisable (but may not be needed).

FMG is not out of the woods yet but they are looking good. So far this has been a great trade. The story and the dream of openning up the north to more competition in Iron Ore as well as providing a rail system that any company can use, I think, is fantastic.

Well done to those who where prepared to take the risk on FMG and all the best to those (like me) who are going to continue to support the company and to those who are about to start doing so :)

I posted a couple of months ago that I was investing in FMG for the long term because I believed that this could be a future BHP for my Superfund, that could contribute greatly to my retirement. That post was scrubbed by Hotcopper, probably understandably at the time. I think that that sentiment is probably backed up enough now to not get scrubbed this time.