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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: porcupine --''''> who wrote (1289)2/18/1999 9:46:00 PM
From: Freedom Fighter  Read Replies (1) of 1722
 
Porc,

>>I have a lot more to say about this subject, Birinyi, Hussman, etc., but
am still mulling things over.<<

What's to think about?

Hussman is looking at earnings, asset values, cyclically adjusted earnings, free cash flow, interest rates, historical relationships between asset classes and making investments based on the weighted risks, values, and probable range of returns over the long term.

Birinyi is looking at who is buying what and how much of it.

One is value investing. The other is technical investing and quite possibly a well thought out version of the greater fool theory. Both may produce profits, but only one is a logical business approach.

It's really not worthy of discussion or thought if we are trying to buy undervalued securities to hold for the long term. I certainly don't want to.

Wayne Crimi
members.aol.com

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