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Re: ed_ferrari post# 179390

Tuesday, 03/06/2007 11:16:49 AM

Tuesday, March 06, 2007 11:16:49 AM

Post# of 433277
ed-ferrari .. here is an example of the institutions being as fallible as the common guy:

I don't recall a single post by anyone on this board all the way back to the RB days that suggested the institutions are infallible. From our perspective the difference of primary importance between institutions and the "common guy" really boils down to just one thing: They have orders of magnitude more money to invest and when a critical mass of them decide to accumulate a given stock the stock price is guaranteed to rise significantly during the accumulation phase. Of secondary importance, they tend to ride out negative events and extended periods of no events which results in lower volatility than the period before they arrived in size. Of course, the other side of the two-edged sword is if it becomes clear that the company is not going to deliver as projected we will get trampled when they head for the exits.

MO,
Danny
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