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Politics : Ask Michael Burke
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To: Earlie who wrote (48574)2/24/1999 12:19:00 PM
From: BGR  Read Replies (1) of 132070
 
Earlie,

Just a personal preference, but I disagree with the notion of value investing as I find the metrics of value investing to be very inconsistent. I prefer growth investing myself. And I have not yet seen any small/mid caps which are growing at a rate higher than their equity appreciation rate. I would like to know if you have seen any, for I will perhaps start researching them then for possible future investments.

As for large caps, many of then are growing at rates significantly lower than their equity appreciation rates. This I suspect is an index fund related behavior, which I do find scary.

However, large caps (not the internet ones) also tend to have significantly higher growth rates than small/mid caps.

I hate margin. I truly do. This partly comes from growing up in a culture which believes in saving and not consumption - which has not been very good for that country actually - and partly from beig burnt badly once from underestimating the risks associated with margins. I have tried to warn the folks of my regulsr thread about the risks of margin.

What I reacted to in your post was a (perceived, maybe) distinction between the so-called smart money vs. dumb money. I have personally found that most (with a few exceptions) market professionals are street smart at best and do not understand modern finance as well as technology which is the growth engine of this economy. I would not be worried about what market professionals are doing.

-BGR.

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