Quote Originally Posted by shasta View Post
Whilst Buffett might buy whole businesses & not just a few shares in them, it's the psychological thinking which is the difference.

He thinks of buying & owning a business forever (& he's a big proponent of the "allocation of capital"), which is the complete opposite of TA, which only trades based on volume & technical indicators - to a chartist what the business does is irrelevant

In more simple terms, if you find a stock you like on the NZX/ASX, & it has a pathway to production say in 3 - 5 years, has a big resource which will be in demand, you buy & hold the stock.

Warren has made some of his biggest purchases following a big correction/drop in the market, so using the fear in the market to your advantage is a Buffett style trait. (I guess it's part of averaging down, which TA frowns upon!)
Surely FA and TA can be compatible though, for example using FA to select a company and TA to time entry and/or exit? I was planning on using both of them this way, or if Im picking stocks using TA, and come to a bit of a stalemate between two or three stocks, FA could be used to make the difference.

Just a thought.