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Strategies & Market Trends : Value Investing

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To: Don Earl who wrote (14624)6/13/2002 4:52:51 AM
From: Dale Baker  Read Replies (3) of 78705
 
To generate a 300% return in one year, you have to take a risk profile that value investors would never take, period.

And I wasn't clobbered in previous years - so your 300% may just be regaining ground you lost as a trader in recent years. My last losing year in the markets was the mid-90's when I still let a broker mess up my accounts. I am up well over 200% since then thanks to a fat year in 1999 and decent defensive play in other years.

If you manage your portfolio for steady gains and avoid major losses, a steady increase will outperform the boom-bust trading cycle in most cases. The majority of traders I have seen go through periods where they lose significant amounts of their capital. Most value investors do not.

Just ask Warren Buffett. If you weren't on a hot streak at the moment, I doubt we would be having this conversation at all.

Everyone has their own approach. I am glad yours works for you. I couldn't sleep at night putting the majority of my net worth on the line like a craps game.
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