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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: B. J. Barron who wrote (7860)	7/1/1999 7:24:00 AM
From: JZGalt	Read Replies (2) \| Respond to of 18928

BJ, Let me tell you a story. A friend of mine suggested I buy Broadcom (BRCM) and hold it for 5 years when it was selling at it's high in the $90's about 6 weeks ago. I was tapped out of cash and didn't make the trade, but another friend of mine did. The stock immediately swung wildly and hit $81 within 3 days. I received several e-mails about "this piece of s%$". In the following week, the stock zoomed up to $106 and my friend breathed a sigh of relief and sold for a profit of about $8. Today the stock is at $144. Moral of the story is don't let your urge to take short term profits get you out of long term positions. Taking long term positions in drugs, large financials and internet related infrastructure plays are 5-10 year plays. Don't be swayed by the quick swings in these stocks. As much as I like the gains I have made in some of my suggestions on this list, I am still considering buying more for core holdings when they swing back down. I average up* which is my non-AIM version of a Vealie followed by buying the dip. Tom and I both own various communications chip stocks which have "been discovered" in the past 8 weeks. Some of these are up 50% in that time period alone, but taken in the context of a 5 year time horizon, they are not that expensive, just not as cheap as they were a few weeks ago. So what's the point? When you go looking for 5 year stocks, you have to have a much broader concept of where the industry is going vs. how the individual stock is performing on a week to week basis. The easiest thing to do is to simply go out and buy the best stock you can find regardless of valuation in some of the best industries you think will grow 25+% per year and then sit back. If you want to AIM and not select stocks, then this is the only fund that I would buy. firsthandfunds.com It is concentrated so most of the money is in a few stocks and therefore has the ability to swing more than normal up and down than a broader index like QQQ. I'm not associated with this in any way, but his track record is very, very good. Free advice and worth every penny. ---- Dave