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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (1959)9/19/1997 6:46:00 AM
From: Jeff Maresh   of 78730
 
Hi Paul - If any method worked nearly 100% of the time, everybody would use it. On Fisher's Super Stock method, management IS the big issue. Since I started following Fisher's method very strictly, every company I have bought has made good money for me. Some a lot more than others. But I haven't lost money yet. The problem is finding true Super Companies that are Super Stocks. The method of identifying and qualifying is straightforward, but time consuming. Finding the low-PSR stuff is easy with a screening program. It's researching about the products, competitors, and management that takes time. I usually only find 1 or perhaps 2 true Super Stocks a year. Others are close, but usually the PSR is too high. In these cases I will usually buy if management is great and they have some big competitive advantage.

>Hi. I like Fisher's PSR sometimes (big tech stocks) and sometimes Graham's
>approach. Have also had some okay luck in investing in companies that I thought I
>knew (but I didn't -g-). I don't think any of these approaches work all the time.
>Big issue for me is management...

Regards
Jeff
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