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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: SS Heatwole who wrote (8235)8/17/1999 1:29:00 PM
From: JZGalt  Read Replies (2) of 18929
 
"any idiot (ie me) can make a 6% return".

The easiest way to make money in the market is to quit looking at companies that don't have earnings growth or prospects of growth. Value doesn't mean a darn thing in the traditional sense of buying slow earnings growth stocks "because they are cheap". Cheap stocks are generally cheap for a reason.

In my experience, stocks trade as a function of earnings and the only way to make real money is to find stocks that offer superior growth prospects and buy them when they trade at a discount to their earnings prospects. I don't even bother to look at stocks unless the general consensus is for the stock to grow at least 20% per year for the next 5 years or the stock is a cyclical stock whose earnings are about to skyrocket. This makes up for a multitude of sins.

AIM or Buy and Hold, if you buy stocks that have superior growth prospects at discount prices, you make a lot of money.

----
Dave
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