Re: Merrill Lynch.
I find having an account at Merrill comforting. I don't trade often in the account, so the brokerage fees really aren't material. (Yes, I have an E*Trade account, too. Had one when the only way to get to them was thru Compuserve.)
But, not to defend M-L, here's why I keep some of my accounts there: 1) They provide a really nice consolidated statement. I can keep track of my CMA, my kids accounts, my IRAs, my wife's IRAs, etc., easily. 2) The trading costs are high enough to force me to really think about the ramifications of the trade. Forces me into LTBH. Which is good for us Gorilla hunters. 3) I use M-L as a contrarian indicator! Since I understand that their 'agenda' is to make money for themselves (thank you Voltaire!), I usually take the other side of the trade!
A case in point: In November 98, INTC just broke into new high territory, so I added to my position. Against the advice of my M-L broker. (I follow Wm O'Neil strategies, too.) A couple of days later, I ran into him at a fund raiser charity event, and he told me that Merrill's top tech/chip analyst, had just put a 'sell' on INTC. I said, literally, "He's an idiot!" My broker went on to defend Kurlack saying stuff like "declining ASPs", "competition with AMS", "Celerons canabalizing PII sales", etc. I replied, that Kurlack is really not an idiot, but he doesn't see the forest for the trees.
Well, last I heard, Kurlack's left M-L, and INTC is up 150%. One should not underestimate the power of a Gorilla.
I do hold some non-tech positions. They are: MDT (Medtronic), HD, PFE, and GE. Long term holds, all. These guys hold gorilla-like positions in their industries. (Well, maybe not PFE. Nobody's perfect!)
I use gorillas as my Core portfolio. I do like to take swing trades, too, I do those at E*Trade.
How 'bout that JDSU! (I can cheerlead, too!)
AdairM |
