In the first of a series of 17, I am going to take look at the chart comparisons for stocks from the Share Investor Portfolio when comparing the 10 year return (above) to the turmoil of the last year with a 1 year return chart (bottom of post).
In this series I want to show the merits of investing, using charts, for the long-term vs short term gains or losses. I will use the longest available data to me for the long-term view and will compare against the NZX50.
The first stock we will look at is Mainfreight Ltd [MFT.NZ] the global logistics company.
As one can see from the two large comparison charts if you have been a Mainfreight stockholder for 10 years your return has been over 300%. A magnificent return by anyone's standards.
Conversely if you look at the one year chart and bought Mainfreight a year ago your return is negative 30%.
You own 3125 [MFT.NZ] shares
purchased at $7.11 [$22218.75]
I have held Mainfreight shares for 2 years and as you can see from the chart above my 2 year return is around negative 33%.
Clearly the long-term view is the winner here and I would contend that if I hold for another 8 years the opportunity to gain similar returns to the last ten remains only if I continue to remain a shareholder.
I will also guess at this point that the next 16 posts in this series will show a similar story.
Keep checking back to see if my hunch is wrong!
Related Share Investor Reading
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed
Share Investor's 2008 stock picks
Shareinvestorforum.com- Discuss this Share Investor Post
Related Amazon reading
A Beginner's Guide to Charting Financial Markets: A Practical Introduction to Technical Analysis for Investors by Michael Kahn
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c Share Investor 2008