Thanks, Chuzzlewit.
But I think you may still have missed my central point. Let me quote it again (key words this time in caps):
I have said repeatedly that I use pre-set criteria...ONLY to run searches in order to obtain a MANAGEABLE list of investment candidates. After that, I TRY TO DO MY OWN RESEARCH on the companies on that list, trying to balance the pros and cons."
"Doing my own research" involves looking at 10-K's, etc. It also involves following threads like this one, where people knowledgeable in the industry contribute all kinds of very valuable (if non-quantifiable) information.
What may have misled you is my use of the verb "try" (twice in the same sentence). This only illustrates my awareness that no matter how diligent I am at doing this research, I will never be as good at it as, say, you are, even if I had time to read all those (ugh!) books on accounting (yecchh!). I sometimes like to think I have some strengths of my own (e.g., the ability to ask tough questions!), but I'm probably just fooling myself....
Another thought of yours: A mutual fund is probably the worst thing you can do next to TA....because the vast majority of fund managers significantly underperform the market. No offense - but a truism. I have seven funds already. One of them is a U.S. index fund (Vanguard). Another is Vanguard's European index fund, which is currently outpeforming the U.S. index year-to-date by a full ten points. Yet another European fund and a world fund are ALSO whomping the S&P. That leaves a Latin American fund (for diversification), a sector fund (telecommunications), and only one "conventionally" managed fund (which is indeed underperforming the index). So, I have no cause to reject the idea of owning mutual funds for the reason you cite.
"You would be much better served with a buy and hold approach consisting largely of high quality companies with solid balance sheets."
That's my approach exactly! Although I, too, pay a good deal of attention to the peg ratio (which tends to make me a little leery of companies like GE). And that's why I am invested in this industry, which is where this whole discussion originated!
Yay, oil services industry! Go, go, go!
jbe
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