1. INTC, CSCO, MSFT; 2. Market timing
I agree that these are long-term keepers. They have near-monopoly positions in their largest product lines. Intel for microprocessors, Cisco for routers, and Microsoft for operating systems and office productivity software. Management at all three is superb and could arguably be the best in the corporate world. Furthermore, corporate culture at all three breeds successul adaptation to the changing marketplace.
INTC 105 3/8, CSCO 59 1/4, MSFT 103 7/16. When we look back 5-10 yrs from now, these prices could seem awfully cheap.
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Timing is relevant as you say...what I meant was that if people buy the same amount of shares (most people do), it doesn't matter much. Most people buy, say, 100 shrs at 30 or 35; they usually don't buy 125 shrs to take advantage of compounding. With the number of shrs held constant, it doesn't matter that much.
I also remember reading that if you bought into the mkt at the worst day every year for the last 50 or so years with a fixed investment (say, $1000 put into an index fund), total returns didn't differ by much even if you compared it to buying on the best day of the year for every year. Financial research also argues that the key is being in the market at all times, not timing one's entry and exit. This would seem to contradict your point. I'll look up the exact piece of research.
Philip
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