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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era
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To: Berney who wrote (985)11/12/1998 7:14:00 PM
From: Freedom Fighter  Read Replies (1) of 1722
 
Berney,

>>But, I differ with the concept that market timing is not a
reasonable strategy for a value investor.<<

Do you also believe that selling an overvalued security is market timing unless the proceeds are immediately placed back into the market?

I don't know anyone besides Reynolds that holds that view of what value investing is. In every other discussion I have had on the subject, market timing was always considered to be the act of buying or selling based on where the investor thought the market or security price was heading. Bull Market/Bear Market etc...

When I sell, I always assume it will continue going up. It's just that I expect to get a better rate of return over the next 5-10 years on the alternative investments where I place the proceeds.

I know Buffett doesn't consider himself a market timer and he always has some cash and occasionally sells and raises more. It's just done on valuation, not on a view of the probable market direction. Neither did Graham and he practically insisted on a bond component to the portfolio that would fluctuate based on the values.

Buffett recently had this to say about Lawrence Tisch's large short bets on the market (which "IS" more of a market call).

(paraphrase)

"I hope investors view Mr.Tisch's record with the same long term perspective that we hope shareholders at Berkshire view us. As for our view, we are not in the business of short selling and we are not market timers."

Not important. I just never heard value investing classified as market timing.
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