Two interesting articles:
The chip capital-equipment sector got a lift when analyst Sue Billat, of BancBoston Robertson Stephens, upgraded five stocks. Among those were Applied Materials [AMAT], which rose 4 3/16 to 63 3/16, and Lam Research [LRCX], which was lifted 6 1/16 to 38 3/8 following a positive quarterly report. The rest were Teradyne [TER], increasing 7 3/8 to 65 7/8, Novellus [NVLS], advancing 5 7/16 to 73 1/8, and Advanced Energy Industries [AEIS], which rose 2 5/8 to 29 1/8.
techweb.com
The objective of stock-picking, wrote Warren Buffett in one of his annual reports, is "to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10 and 20 years from now." That, anyway, is how Buffett himself, chairman of Berkshire Hathaway Inc. and America's most successful investor, does it.
"If you aren't willing to own a stock for 10 years," he wrote, "don't even think about owning it for 10 minutes."With such a distant horizon, you can afford to look for companies that might be temporarily in trouble, with their prices depressed. Given time, these firms can bounce back and start producing big profits -- which translate into higher prices and dividend
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