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Dipy: You simply miss the point about what is truly long-term investing and an appropriate return. You constantly ballyhoo MO for its dependable return, and since 1972, it has been the premier performer of the original Nifty Fifty--returning an average of 17% per year--year in and year out. Well Dipy, if you had invested in LSI for the past 10 years, you would have had greater success than that. Just because a company undergoes significant fluctuations does not mean that it cannot be a superior long-term investment as LSI has demonstrated over the past ten years. Indeed, what you are truly complaining about when you talk of LSI is your limitations as a long-term investor. Not all superior long-term investments need to go up drip by drip on a year to year basis, and LSI is one of those investments. There will be years, when a company like LSI loses 50 percent or more of its value, but over time, it will return far in excess of your beloved 17 percent. You truly need to learn that being an outstanding long-term investor requires a person to be able to sit through the poor years in order to benefit from the great years, such as this one, when it is very likely that LSI will triple in price year over year. I would add that the same analogy applies to sector mutual funds versus the index funds. In an average year, an index fund will outperform about 75 % of all of the rest of the funds, but over a five year period, the average index fund will only outperform 50% of the other funds. Why? Because there are periods during a five year period, when that funds sector will explode. And that is clearly what is happening this year in semiconductors. Your "experience" with your LSI holding reflects good timing in a purchase, but the longest dryspell for the semi business ever. We have now skipped two generations, and it is very possible that the longest boom period in semis is about to hit us. Perhaps you can tell me where the excess capacity is in the .25 and .18 markets. It ain't there, and as a result, the big money is about to be made. Sell if you wish, but I suspect that you will go to the LSI graveyard along with Frank/Fla, K The Investor, and others who gave up much too soon. |
