Intel Strategy for Achieving Wealth and Off Topic Message Board

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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic

INTC 37.51

-0.8%

Dec 15 3:59 PM EST

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To: FANMAN who wrote (3)	3/31/1997 3:55:00 PM
From: Brian Malloy	of 27012

Fanman, Later when I have more time I plan to post a longer note to the thread in general. I was reading through the posts so far and saw your response. As you point out, the companies that one uses in buy and hold can underachieve. I have wrestled with this for some time. Basically, the way I look at it, is that if you have a portfolio of growth stocks and some go bad over time then you are still in great shape. I tend to focus on my absolute gains and not my relative loses (some may argue or disagree with my choice of absolute and relative but this is my personal philosophy). If the story that I am developing for a company dies out and I see little on its horizon then it is time to sell. It hasn't happened to me yet, but I may sell a couple of years after it was obvious that things were going downhill. However, I believe that I will still come out ahead, because of buy and hold. For example, as you point out, from 1992 through 1996 Wallmart basically traded at $23 and underachieved the market. For a short term trader this is very bad. For a long term holder, this is not something that you want to happen but if you first purchased the shares in 1982 and the split adjusted value of your shares is now 50 cents (I'm using 50 cents for illustrative purposes, I don't know what the correct figure is) then even with the five lean years you have done extremely well. Much better than most can say for the same 15 year holding period. I don't own Wallmart, I sure wish I did buy it long ago. If you had purchased it when it first traded, the split adjusted value of the shares is about 1.5 cents. Just my opinion, but as to price I expect to see INTC at $105 post split by the end of the year. I believe that people will see the whole AMD thing was out of proportion and that INTC is not going out of business. Brian Malloy

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