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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: shades who wrote (65898)7/4/2005 9:17:27 AM
From: Moominoid  Read Replies (1) of 74559
 
The SEC is supposed to lock up insider traders who have more info than the market

But let's say you don't have any special info of that sort. I was just saying maybe some charge would be trumped up against you. Like in Martha Stewart's case (lying to the government).

its a zero sum game

Futures, options, and currencies trading are zero sum. Every buyer matchers a short seller. That's not the case with stocks, bonds and other real assets. You have to ask why someone is selling. If they sell everything they have that might be a bad sign :) One of my biggest losses ever was a case like that... If they sell some of what they have - e.g. Google they might just be trying to make a market where the rest of what they have will receive apprpriate recognition, they will be able to diversify, and raise more capital.

Is there a reason all this news on wall street coming out about all these crooks does not make you take pause?

Of course there were and are plenty of crooks in business.

Mr. Phil disagrees with you, Bre-x investors disagree with you.

There are lots of conspiracies and crooks, but there isn't a BIG CONSPIRACY.

core in dividend paying stocks trading the fringes of his money on speculative guesses.

That doesn't sound too different to my strategy. Or to Soros' strategy, or to Buffett's actual strategy, or to most insurance companies.

The research does show small is good.

Two of my core holdings are Colonial First State Future Leaders and CFS Developing Companies. They have now close these small cap funds to new investors. I like it when I see a fund manager doing that. And Platinum Capital is another one. It has less than $200mil under management and pays a 7.5% dividend yield. It is a long-short stock fund with currency overlay.

I don't understand what you are getting at, the ones I have known that thought like a criminal

If you think you can't win, you probably won't.

How many here invest to create real societal wealth and not just personal gain

Well I've taken part in IPOs when I was allowed too :) That's new capital for real businesses. Chen is certainly working to help create businesses in China. At this point in my career though my societal benefit comes much more from teaching students and doing my academic research. Yes I get paid for the former and enjoy doing the latter. Perhaps some day when I have enough bucks I'll be able to do some more useful things with it.

David
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