Vendit -
Thanks for the Cramer article post. Very interesting regarding the S&P balancing.
OT: OT: re: CRAMER'S "INVESTMENT" PHILOSOPHY:
The article reminded also me of why I don't have much regard for his investment style and why I dropped out of the street.com's trial period last last Sept. -- Oct. Everything seems to be ultimately a minute to minute switch and switch back decision. At the height of the crunch last fall -- round about Oct. 8 to be exact-- his frequent daily missives were frantic and totally gloomy. Check the archives -- he was screaming Nasdaq 1150 !!! Nasdaq 1150 !!! Here it comes !! and selling everything in sight. I'm glad I didn't listen and tried to rebalance more intensively in the long-term winners like CMGi, AOL, YHOO, CSCO, etc. as soon as some of the shell shock wore off.
Finally, after all the fireworks and bravado, CRAMER'S HEDGE FUND RETURN FOR THE YEAR ? -- one of the greatest years ever in the market for some sectors (how about AOL, YHOO, CMGi, etc. !!!!) ? His return: 2 %, not a typo, yes 2 % -- after fees that is. I still give him his due: There is no doubt he is very entertaining and provocative and has skillfully marketed himself, obviously with great success. I don't know about his aim but I always felt he was sort of a brilliant battlefield journalist/reporter -- caught up in and skillfully recreating the drama and turmoil of the moment.
Anyway, SORRY FOR THE RAMBLING but it does highlight by negative example the true value of a long-term 'buy the winners, stick with them and buy more on the dips ' philosophy. FWIW, I first bought AOL in November 1994 and it took me a year and half to realize that I needed to buy back every share I sold after the early splits. I did so and I have added substantially to the position since then -- most recently in Feb. by way of NSCP with the great 5-6% discount. From November 1994 to the S&P and the merger with NSCP -- THE one and only "original" internet stock -- plus the alliance with SUNW -- this trip is not over quite yet and in fact the road looks a lot smoother even if the pace will not quite as fast !
Good luck --
George Martin
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