USRX Message Board - Msg: 862604

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Technology Stocks : USRX

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To: damniseedemons who wrote (12582)	2/21/1997 7:10:00 PM
From: Fred Fahmy	of 18024

Sal, <<No offense, but everyone here thought that $70 was a buying opportunity.>> I still think 70 is a good price based on fundamentals and future prospects if you have a long term objective. Clearly we have completely different investment styles. I like the get rich slow approach. Pick solid industry leading companies with good fundamentals and hold them until something changes fundamentally within the company or within the industry. I feel very confident in my ability to tell when either of these things is happening since I follow the tech industry closely on a daily basis. I think 70 will look absurd in hindsight 2 or 3 or 4 years down the road (actually I think it will look very cheap just 10 months down the road). I bought Intel about 4 years ago and have nearly 5x my initial investment. I have never sold a share and I won't until I retire unless I see something major coming down the road. I watched it drop from 73 in late 1995 to 49 in 1996 and never worried a bit. My only mistake was not adding more on the way down. I knew the Intel drop was an over reaction by analysts who didn't understand the tech industry as well as I do (no bragging intended) just like I know that this USRX sell off is an over reaction. How did I know that the Intel sell-off was unwarranted then and that the USRX sell-off is equally unwarranted now?? Because I use fundamentals to tell me that in both cases the companies have only gotten stronger and there was no logical reason for the sell-offs. This is when I buy, not bottom fishing, but when I see big sell-offs that are not supported by anything (IMO) but emotion and lack of understanding. In the case of INTC I will just keep holding through thick and thin. This requires little effort on my part and these types of returns are more than satisfactory for me. I have been doing likewise with USRX only this time I have been smart enough to add to my core position at these bargain prices. I am not a bottom fisher or a value investor either. I am long term oriented and buy and hold stocks based on fundamentals. I know some people find this boring but it works for me and I consider this method to have the lowest risk/reward ratio. Because this is my strategy I invest in only two types of stocks, technology and healthcare. During my lifetime these segments of the world economy will grow more and faster than any other. Out of curiosity, what is the longest you have ever held a stock?? FF

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