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Strategies & Market Trends : Value Investing

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To: Axel Gunderson who wrote (4752)8/21/1998 11:56:00 PM
From: Paul Senior  Read Replies (3) of 78611
 
I think you all should be much more thoughtful about your goals of trying to beat the market. It's mentioned here as some sort of desirable thing. I don't recall Dr. Graham ever reporting that his methods would enable either his conservative investor or his enterprising investor to beat the market.

And there are several people (ref. Siegel) who say that it's not even necessary to beat the market to do really well. Most of you guys I think are young enough to let compound interest work in your favor. Let that happen. From what I read here you all are realistic--- so you don't expect the stock market to let you have a Ferrari and better class of woman (or man) and a total lifestyle change so easily. You won't get that quickly from value investing IMO. It takes time and patience. But it will happen if you will stick to your methods and let time work for you. Don't panic! You've all called it right IMO--we are in a bear market for value stocks, it seems to me too. But the companies we are invested in are real businesses, providing real products and services that people want, and at some point, we can expect some of these companies' stocks to 'adequately' reflect profits, assets, and future prospects. Stay diversified, think long term, and keep some powder dry!... JMO, Paul
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