I'm finding that even solid value stocks, like Deswell, can find a way to go down 50% if
sentiment is against them, so I'm becoming more willing to take a 50% hit in a more
growth oriented companies with good prospects.
Yes, I'm thinking that in the future I will be less afraid of growth stocks as well. Ciena took a $25 hit, but still its losses don't approach the slow 50% burn that Deswell or New Holland has put on some of us. And if I had bought Ciena, then I probably owned MSFT, DELL, CSCO, AMZN, YHOO etc, which have beat the pants off anything Graham followers have done. So the question is if value doesn't keep up during the uptrend and gets killed during the downtrend, then why do value? It's in my nature, so I have to, and I really do believe it is still truly intelligent investing, but maybe at least in medical companies that I know I'll start being more aggresive.
Mike |
