TRIH, AGX and some of Mr. P's other calls were value stocks. You know, companies with real earnings, low PE ratios, that make real products or have real services. As opposed to certain tech stocks whose value is based on a hope and a prayer that someday, maybe, just maybe, those companies will grow into their valuations. I know, I know, the market is different now due to 401Ks, individuals' ease of access to the markets, and general stock market mania, but you have to wonder just how long will it last. 5 years? 10? 15? 20? I can't imagine that value has been thrown out of the equation forever, but I just don't know when it will return.
So is the "tech crap" exciting? Hell yes! Is it safe? Hell NO! Is a good old-fashioned value play a "bad" investment? I don't think so, and I like having them sprinkled in amongst the higher-risk issues. And some of these value plays are producing pretty decent returns, but they require a bit of patience. |
