Thanks for that. There is'nt an easy way of making a million except in hindsight.
In the eighties when I invested in shares on some occasions, NZ Oil and Gas was one. I contacted the HO and received the latest product of the geologist's thinking as to where the next drill hole was going to be.
I looked at it but there was an alternative some 20 km South. Although I did'nt have the knowledge, I was convinced they had the wrong hole. The shares were $4.50. I asked them why and I was told they could'nt get the suitable ship to drill the other hole.
I sold my shares, the hole was dry and the shares fell to $1.50. Some 6 months later when the investment heat for oil had gone, oil and gas was found in "my" hole and it will be used. Had they drilled that hole first, the shares would have gone up to $8 or more dollars. ______________________________
In the nineties, I was serious about investing in shares. There was a small company with shares @$1.20 and after study, I bought quite a few. I visited a Branch and mentioned to the Manager that I was prepared to make a forecast based on their data, issued sofar.
This company had some in those days novel products which varied in price from $200 to $30,000. In those days, it was a company with a very dominant market share, a live wire Board and a top CEO.
I prepared a forecast for the next 12 months and left a few copies with the manager. It had a stack of colour plates with the products attached.
Nothing happened for 3 months and then the shares suddenly started to rise to $3 which was a large amount in the slow economy.
After the Annual report appeared, I prepared another forecast, this time for 3 years. The shares shot up to $4.50. Later on I heard that the HO Management had distributed copies of this forecast; a broker was actively sending it to his clients as well.
I received cased bottles of wine from the company; still have one left as a souvenir.
At the next Annual meeting, I was treated like a hero. The Chairman's report was a good one and I suggested that the share price was too low IMHO. That was soon rectified and it shot up once again. I believe it hit $9.
Then, suddenly, a report came through that the CEO was leaving. I sold most of my shares and they dropped later to below $1.
It appeared, the company had lost its distribution rights. The moral of this story is that there is risk, even when least expected.
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