Ask Colin

You mention in Shares Charting that about 10 years of earnings is needed to analyse it, otherwise it may be best left alone. This would knock out a lot of growth stocks like CSL, wouldn't it?

You mention in Shares Charting that about 10 years of earnings is needed to analyse it, otherwise it may be best left alone. This would knock out a lot of growth stocks like CSL, wouldn't it?

I think you are putting words in my mouth here. However, assuming you have interpreted my remarks that way, my short answer is yes, no and maybe.

Yes, if you are a conservative value investor who is focussing on the marging of safety.

No, if you are an aggressive growth investor who knows how to do their research and to assume risks safely.

Maybe, if there is persuasive data in the shorter-term and you are less conservative - eg I used Funtastic as one example and it has a short history, but also Hills, which has a long one.

There are many ways to go about analysing stocks. I showed a particular easy method based on the margin of safety. I rolled in some consideration of groth companies. In a short article, there is a limitto what can be done. It is at best an introduction, but I tried to make it as practical and useful as I could.

Keyword: