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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (46656)2/17/2012 11:25:56 AM
From: Paul Senior  Read Replies (1) of 78751
 
Seems somewhat disingenuous to suggest value investing is not belief investing. There's belief and hope associated with almost any stock purchase. The belief that something will change (or maybe not change, eg. that an announced takeover actually occurs), something positive, to drive the stock price higher. In the long run, Graham said, the market's a weighing machine. To me that means for any value stock I'm about to buy, the belief part is that I have to believe when I go to sell it, that market participants will have bid up the price.

"...most of lifetime stock successes are small caps that grow fast and more than anyone has expected." I interpret this to mean it's mostly the small caps that become lifetime successes. I believe that for most people (including me) most success with a lifetime stock will come not from rummaging among the small-cap lifetime possibilities, but rather going with the fewer larger-caps that have already established themselves.
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