One of course has to respect an individual’s freedom of choice in the how and why of investing. I can understand investors showing discretion in the companies they elect to invest in but I wonder about the wisdom of staying in that investment to the bitter end?
“Buy Australian” is a catch cry we hear daily. This is not so much an ethical issue but certainly has “social” implications. A recent example of this appeal, has been in the Xstrata bid for MIM. Major advertising campaigns costing millions of dollars, have attempted to sway our investment judgment by pulling at our heartstrings rather than providing conclusive evidence as to why retaining MIM shares is a sound investment decision. MIM closed on Friday at $1.57 with a low of $1.52 for the week, but hovered at $1.70 for over a month. To each there own, but I invested in MIM for one reason and the decision as to when to get out stared at me for over a month and I needed no persuasion to take profits! If I want to make a social contribution to the world in which I live, I can do that as a separate exercise and avoid the two being confused.
“Save our Icons” This week AMP shareholders will be invited to further invest in the struggling icon by way of a Share Purchase Plan, at a price of $5.50 when the stock is at $4.77! Can someone persuade me about the merits please?