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Technology Stocks : WDC/Sandisk Corporation

WDC 181.08

+3.5%

Dec 19 9:30 AM EST

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To: scott who wrote (6612)	8/14/1999 11:04:00 AM
From: Art Bechhoefer	Read Replies (3) of 60323

Of course, I can't suggest how you should manage your portfolio, but there are a couple of guidelines that might apply here. Warren Buffett, the genius behind Berkshire Hathaway (a stock that has shown about a 23% gain in book value compounded annually for the last 25 or so years), says that he never intends to sell stocks in companies that are well managed and have a good business plan. Berkshire Hathaway started buying GEICO (insurance) back in the late 70's and never sold. It's the same with many other companies held by Berkshire. They sell only when the fundamentals change, as they did with U.S. Air and a few other booboos. My own selling rule is similar. As long as the management is doing a good job, as long as the company has proprietary technology, and as long as the market for its products is expanding, I see no reason to sell. If a person needs cash at a time like this, when there is still a good possibility of a correction spurred by higher interest rates, then one appropriate, and CONSERVATIVE strategy would be to sell out-of-the-money covered calls with an expiration date at least three months in advance.

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