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Strategies & Market Trends : Value Investing

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To: Craig Bartels who wrote (10899)7/10/2000 2:24:39 AM
From: jeffbas  Read Replies (2) of 78464
 
Craig, if you are prepared for a short to double or triple on you, what kind of strategy is it to take risks of 100-200% against you for the potential of up to 100% if the thing goes bankrupt, and realistically more like 50-75%. How can that be a risk/reward that is tolerable to you, when you can pick longs by the hundreds that have better risk/reward. Is this part of some overall market sensitivity neutralization strategy?

I too watch the housing stocks, although in my case it is the manufactured housing stocks. I think that eventually a correctly timed purchase will deliver 5 times on your money on the right ones. Which and when is the trick.

To Mike Burry - Ahhh, the exuberance of youth. You do not have a clue what the 1973-74 bear market was like and until you do, you won't know what I mean - and you won't learn it be watching someone else "dumber than you" lose their shirt. There were not any smart people in the market then - absolutely every type of stock was crushed. Would you believe value stocks with good growth prospects at 3 and 4 times earnings?
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