Monday, December 1, 2008

Long vs Short: Mainfreight Ltd

Chart forMainfreight Ltd (MFT.NZ)

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%.


Symbol
Price
Value
Earned
$4.80
$15000

$-7218.75
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

A Beginner's Guide to Charting Financial Markets: A Practical Introduction to Technical Analysis for Investors by Michael Kahn
Buy new: $15.63 / Used from: $14.73
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c Share Investor 2008