Earlier this week Greg Hoffman wrote a post outlining why he thinks Marcus Padley is dead wrong on note issues.
Marcus has kindly responded and we’ve published his comments below.
‘I think Marcus is a wonderful bloke who respects value investing and technical analysis both.
On value investing and technical trading – I do wonder why value investors persist in declaring that they can’t time the market ….and at the same time why technical analysts persist in treating shares like cabbages treating Woolworths and CuDeco the same without respect to quality and therefore risk.
Why not both at least try employing a little bit of both. Being narrow in approach is the Achilles heel of any investor. Its surely not good enough to declare a company a good company (and a therefore a buy) yet ignore the fact that the money is made out of share prices not companies, in which case you cannot dismiss trends, sentiment, non-value based drivers. The game is about making money not valuing companies – the two are related but not the same and you can’t shut your mind to any approach and use just one. You are limiting your options.
We use both, any, every, all. Anything that helps make money.
The posts – I am a bit put out at some of the references to me in some of these posts – it is odd the generalisations made – please read my articles in context not pick a line and extrapolate everything I think from there – and odd the tendency to dismiss quickly and in ignorance of the full body of work (‘Fool”…really?). It ignores the depth of the work I have done over and above the expected and the normal and dismisses the tremendous efforts I have made to bring the stock market to every day investors in an entertaining and educational way and in a language they can understand. I set out to provoke thought and interest with stock market insight and experience iced by the educated use of the English language. I hope I do that…any value investor will understand the value in that and in doing that it is necessary to make bold points – would you prefer I didn’t? I have written my newspaper articles for eight years now for a tenth of the minimum wage. Maybe I have wasted my time…I hope I haven’t.
Notes – ANZ’s list on March 21st – it will be an interesting debut. If you’re lucky you’ll be picking some of these notes up at a discount in the market at your leisure….at the right price they will still serve your purpose…higher yield and lower risk.
On the article – I understand your points Greg (I am slightly guilty as charged)….but the ABC made it sound soooo bad – that’s what I was reacting to, not a valuation point…the suggestion that they are sooo risky. The way they cut that segment was designed to perpetuate the idle dismissal of anything done by the finance industry as a conspiracy (typical stand point of the uninvolved) and on top of that appeared to paint these notes as containing an extreme risk profile which is a misrepresentation and risked putting people off them who could be well served by them (at the right price) and it also painted everyone that had already committed as having been duped and a fool. Idle stuff. They deserved some push back.
And lets also keep this in perspective…Its only TV!…its an entertainment even when it is finance. Why else are so many people that can’t tell the future still tolerated on the medium. Because they are interesting/controversial/
Thanks for the forum/opportunity. Pleasure to cross swords albeit softly. By the way…there are some things you do in the Intelligent Investor that no-one does as well. I hope we are both an essential part of the stock market fabric even if we do do different things.
Lunch anytime.
Regards,
Marcus Padley’
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