Fusion Investing and Analysis combines fundamental and technical analysis with lashings of behavioral finance. My focus is on investing in companies, Australian stocks and North American shares, with the aim of building long term wealth. To quench my thirsts for action and income I also trade options and ETFs in US markets.
Fusion Analysis and Investing hopes to guide you from newbie investor to investing master. We’ll show you how to use all the common tools in an investors toolbox and more importantly how to select which tools, investing philosophy and strategy are right for you.
We aim to share key insights on how to fuse your investing tools into a powerful toolset. We hope to empower individual investor with the skills required to have an edge in their investing lives.
About Fusion Investing
There are many paths to investing success. There are many tools to assist with your investing journey. Fusion Investing is all about choosing which path and tools are best for you. Many investment advisors and experts claim their path is the only path to investment success or long term wealth accumulation. Their path may be right for them, but it is folly to believe it is the only path. There is a best path for each person and we aim to help you find your path.
|Whether You’re Starting Out||or Moving on Up||Fusion Analysis and Investing will provide a different perspective. We’ll provide the best free portfolio management software, the best Excel spreadsheets, the top options trading spreadsheets and the best investment articles and ebooks on the web.|
Growth or Value
Fusion investing combines elements from many investment schools; the combination is varied depending on the practitioner. We view differentiations like growth and value as meaningless and prefer to combine aspects of both. This is not an original thought. Warren Buffett commented on this in his 1992 Shareholders Letter. Rather than paraphrase Buffett we’ll let him speak for himself.
” In answering this question, most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth.” Indeed, many investment professionals see any mixing of the two terms as a form of intellectual cross-dressing.
We view that as fuzzy thinking (in which, it must be confessed, I myself engaged some years ago). In our opinion, the two approaches are joined at the hip: Growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive.
In addition, we think the very term “value investing” is redundant. What is “investing” if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value – in the hope that it can soon be sold for a still-higher price – should be
labeled speculation (which is neither illegal, immoral nor – in our view – financially fattening).”
If you have not read Buffett’s Berkshire Hathaway Shareholder Letters we strongly encourage you to do so.
Fusion investing combines growth and value, but our cross dressing doesn’t end there. We also seek the best tools and methods from fields which analysts consider diametrically opposed. We combine elements from fundamental and technical analysis. While many investment professional view this as a marriage destined to fail, we view fusion analysis as a marriage made in heaven. A quick example of this marriage is using fundamental analysis to select a company and then using technical analysis to assist in the actual purchase.
Another important tool in fusion analysis is investor sentiment. In this article Inya Ivkovic discusses integrating fundamental analysis with investor sentiment. Ivkovic notes how “noise traders” often push assets prices great distances from their intrinsic values. Benjamin Graham, the father of security analysis, said “In the short run the market is a voting machine, and in the long run it is a weighing machine”. Fusion investing is about profiting from understanding both the voting and the weighing.
In summary fusion analysis and investing combines fundamental, technical and behavioural investing with no regard to traditional asset classes or styles and profits from understanding both the voting and the weighing machine.
Our view on wealth was summarised by Tony Robbins when he said,
“The key is not the mere pursuit of wealth, but changing your beliefs and attitudes about it so you see it as a means for contribution, not the end-all and be-all for happiness.”
You can read more on our view on wealth and happiness here
Over time I’ll highlight the tools and thought process I use for my option trades. I do not look at options as a zero sum game. I fuse options with fundamental and technical analysis to add steady income to my portfolio. I do not speculate with options. Well maybe a little when I’ve had a few too many drinks and need to unleash the gambler within.
I use options to enhance my share portfolio. I consider myself an insurance salesman and primarily sell calls and puts, though have been known to use spreads and synthetics. I also buy call LEAPS (long term options) particularly at times like this [Nov08] when the market is below fair value.
About Dean Morel
My external focus is on completing my Masters, continuing with the CFA Program and building our wealth. The prospect of working with a great team of people also deserves a honorable mention.
Check everything yourself. I’m a guy, at home looking out a window at my Dracena Dracco. At 20 I started investing and learning about investing. I bought my first shares days after the ’87 crash, they were disappointing, underperforming the rising market. I had been stockbrokered and realised I must learn to manage my own money and I’m still learning. From 25: I got a second or was it third education, got a good job, worked hard at it, figured out how to maximise my income in the shortest time frame and so on. At 27 I was stunned to discover the concept of 72. Was I away the day they taught that at school? When I next saw a financial planner, I learnt it takes 15 years to retire once you focus on retiring. Some do it faster while the majority still rely on the government. My early days at SAP.
All the usual stuff. Whatever this guy said if you need to read something, plus every other disclaimer I can think of and any you can think of too.