Expert stockbroker William B Taurine has come out strongly in favour of buying stocks. At a recent fund management conference in Manhattan he said, "if you look at the share prices over the last 12 months or so, it's pretty clear that stock prices are on a trajectory to the moon." Taurine's comments were for the ears of super special elite fund managers, although this correspondent found out that anyone wearing a Burberry, Boss or Armani suit (and arriving in a chauffeured limousine) could gain admittance using a modicum of bluff.
"This trajectory is particularly clear if you look at tech stocks," elaborated Taurine, "it's quite clear that tech stocks will go up until they reach the moon, if not forever. Investors who concern themselves with details such as earnings and cash flow will miss out." He supplied the chart below to the audience…
"The beauty of tech stocks," he continued "is that they appear not to be affected by gravity… NASA should look into it."
Taurine was also excited about the potential of a certain group of Australian Stocks. That's right, the world's pre-eminent stock broker identified a corner of our own little stock exchange for some extra-special attention… "The extra brokerage costs will easily be offset by the immediacy of the likely gains," he told his North American clients. You'll never guess the sector he's touting.
"There is one startlingly undervalued opportunity on the Australian stock exchange," he said, as many of the fund managers present took out their smart phones, logging into client trading accounts, finger on the buy trigger. "Gentlemen," he said, "there seems to be an undeniable trend, of late, in Australian stock prices that start with the letter V. For example there is a company called VOC that has been on a strong run lately, and others called VMT, VSC, VTG. They've all been strongly up in the last year. It's pretty clear that their momentum will take them to the moon. This group may even contain the first stock in the world to reach the moon. I particularly like VOC because it might be a tech stock and it starts with V."
You can see the very real impact of Mr Taurine highlighting the likely destination of VOC, in the chart below.
Foolish takeaway
Happy April Fools Day!!
Truly Foolish investors still examine the underlying business, attempt to value it, and call it a buy if the stock is on sale at below value. Foolish investors don't know where the stock price will go, but they try to minimise frictional costs by becoming long-term investors. For any investor, quality research into the underlying business and a steady hand, will help improve returns. Never forget a stock is a small part of a business, not a ticker and a price on a screen.
