Can the success of this investment club be detrimental to a company share price?
Something Andrew said when Premium kicked off has me pondering this phenomenon. I think it may have been in reference to a cap on member numbers.
I can't speak on behalf of everyone here, but my investing decisions are heavily weighted toward companies that are discussed here. As exampled by the Strawman Index, we are pretty alright when it comes to beating the index. I'm going to make the assumption that many of you are like me and your RL investments are heavily influenced by the companies favoured here.
Over time our returns will compound and the capital we will have available to deploy on new investment ideas will be larger. We as a group favour the smaller end of the market.
Could our investments lead to an inadvertent pump and dump scenario down the road?
I'm making some pretty large assumptions, but are there examples of other investment clubs doing this? And is there a solution?
Edit: Didn't something similar happen recently with Dicker Data (DDR). TechBunny read an article and posted about it here. The theory appears to have unfolded as the article stated; the market is correcting the correction