SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Michael Burry who wrote (6639)4/9/1999 1:29:00 PM
From: Freedom Fighter  Read Replies (1) of 78568
 
Mike,

>>My problem is this. I suspect that when the big ones blow up, everyone is going down with the ship.<<

>I suspect that this may not happen this time. I can see the internets blowing up and others flourishing, especially small cap value. <

Here's the way I see. Keep in mind this is not a judgment about what to do, it's just a view based on my observation of what has happened in the past.

I'm finding a lot of interesting prices among smaller cap companies that I do not know very well. I suspect that if we compare investment results between that category and the big blue chips and internets, the little guys will outperform significantly over say the next 10 years. So from a valuation and long term perspective I am totally in your camp.

But I have the view that many pockets of blue chips are very overvalued and the internets are really interNUTS!

I also have the view that that if the overvaluation among the premier S&P500 stocks gets corrected violently, all ships are going to sink because I think it will cause some problems in psychology, the economy, and perhaps even some panic selling etc... This market appears to be very leveraged.

If however, the excesses get corrected by time and the values catch up to the prices, I think a portfolio of small caps will do great without interruption.

For me it's a matter of:

1. Do I want to commit money to companies I do not know very well when they might get "really" cheap within a year or two.

2. Do I want to risk not having any ammunition when the big guys that I really love get attractive again.

I do not have this issue resolved in my mind yet so I am nibbling on positions that I like but don't love while keeping a loaded bazooka just in case.

Wayne

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News