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Strategies & Market Trends : Value Investing

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To: jeffbas who wrote (8526)10/5/1999 1:14:00 AM
From: James Clarke  Read Replies (3) of 78516
 
I'm with Jeff on this one Paul (though your argument on Mattel hits the nail on the head). You buy when you think you have a screamer - a 50% gain. As we all know, half of them (if you're lucky) work. And that gives you a decent return. The key is avoiding the falling knives like Mattel. 50% potential with no downside risk - they're out there, and when you find one you usually know it, but they're rare. Where I've found those consistently is net-nets (with my added criteria). One of these days I'm just going to conclude I should only invest in those. But getting back to Paul's earlier post about investing for your mother, I just put about a tenth of my mother's portfolio into LKI, EBSC and MAXS. Those might be the least risky stocks in her portfolio, but every time I talk to her those are the ones she bugs me about. If Disney's down a couple points, no big deal. If LKI is down an eighth I get a call. We'll see how she takes Mattel - on that one I'm more worried about my boss - and my wife. I own that in every account I am associated with.

JJC
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