Firstly before I'm hung drawn and quartered , I'm not totally advocating the trade of possibly our best pick in 15 years, in the best draft in 5 years if not one of the best drafts ever. I’m simply floating an idea based on the principles on Contrarian investing.
The stockmarket is a funny place , one would think that a stock’s worth could be determined to a reasonable degree, worked out based on the income it can deliver today and the potential growth for the future etc. , but an important part of any stocks worth is determined simply by the psychology of the market. Booms and busts can be sector or market wide and sentiment and emotion can greatly effect price. Obviously things like the economy play a part but quite often the market has seen huge and rapid ups and downs based on nothing other than a stampede mentality. When a stockmarket is going down , the logic of a stocks soundness can be forgotten and very good business can be valued for less than it’s intrinsic worth.
Its here that certain stockmarket gurus, talented men who are brave enough to not run with pack can do extremely well. Investing against the trend is termed being “Contrarian” and legendary investment Guru Warren Buffet runs his company Berkshire Hathaway on these principles. When people sold Gillette down to silly levels , he studied the balance sheet etc. but one of his key motivators is for him to understand the core of any business he is interested in. So, looking at what Gillette sells and with a simple philosophy that everyday men all over the USA , if not the world wake up and shave , no matter what the investment markets variation’s , he bought against the trend and waited for the market to come back to him. When the market took Coke Cola to silly levels again he bought it. A $10,000 investment into Berkshire Hathaway when Buffett took control in 1965 would be worth over $50 million today. By comparison, $10,000 in the USA stockmarket index , S&P 500 would have grown to only $500,000.
My rather long winded point is investing against the trend can be a winning strategy.This draft’s reputation for talent is no secret. Early draft picks in this draft will be deemed to be worth extreme amounts because every club will visualise themselves picking up another Chris Judd. We have lucked out because our “Chris Judd” in coming to us a R3 pick in the form of Tom H and it gives us the option of looking at alternatives.Which alternatives? Who knows but what if North offered Daniel Welles , what if Richmond offered Tambling , who knows maybe them plus picks …
It would have to be an unusually good deal but I’m sure there will be lots of options that will be on the table come the end of the season.
Consider - an immediate injection of a ready to go, slick talent like Welles , meshed with guys like Bartel and Corey and maybe Varcoe kicking it long to a fit Dog Johnson and Ottens and young guns Nathan A and Tommy H, sure doesn’t sound to shabby to me. Now I know there is talent in this draft , super talent but IF the deal is good enough ,really good enough, this is one alternative I think that’s worth consideration!
The stockmarket is a funny place , one would think that a stock’s worth could be determined to a reasonable degree, worked out based on the income it can deliver today and the potential growth for the future etc. , but an important part of any stocks worth is determined simply by the psychology of the market. Booms and busts can be sector or market wide and sentiment and emotion can greatly effect price. Obviously things like the economy play a part but quite often the market has seen huge and rapid ups and downs based on nothing other than a stampede mentality. When a stockmarket is going down , the logic of a stocks soundness can be forgotten and very good business can be valued for less than it’s intrinsic worth.
Its here that certain stockmarket gurus, talented men who are brave enough to not run with pack can do extremely well. Investing against the trend is termed being “Contrarian” and legendary investment Guru Warren Buffet runs his company Berkshire Hathaway on these principles. When people sold Gillette down to silly levels , he studied the balance sheet etc. but one of his key motivators is for him to understand the core of any business he is interested in. So, looking at what Gillette sells and with a simple philosophy that everyday men all over the USA , if not the world wake up and shave , no matter what the investment markets variation’s , he bought against the trend and waited for the market to come back to him. When the market took Coke Cola to silly levels again he bought it. A $10,000 investment into Berkshire Hathaway when Buffett took control in 1965 would be worth over $50 million today. By comparison, $10,000 in the USA stockmarket index , S&P 500 would have grown to only $500,000.
My rather long winded point is investing against the trend can be a winning strategy.This draft’s reputation for talent is no secret. Early draft picks in this draft will be deemed to be worth extreme amounts because every club will visualise themselves picking up another Chris Judd. We have lucked out because our “Chris Judd” in coming to us a R3 pick in the form of Tom H and it gives us the option of looking at alternatives.Which alternatives? Who knows but what if North offered Daniel Welles , what if Richmond offered Tambling , who knows maybe them plus picks …
It would have to be an unusually good deal but I’m sure there will be lots of options that will be on the table come the end of the season.
Consider - an immediate injection of a ready to go, slick talent like Welles , meshed with guys like Bartel and Corey and maybe Varcoe kicking it long to a fit Dog Johnson and Ottens and young guns Nathan A and Tommy H, sure doesn’t sound to shabby to me. Now I know there is talent in this draft , super talent but IF the deal is good enough ,really good enough, this is one alternative I think that’s worth consideration!







