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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (8156)	9/5/1999 6:58:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78842

"Value will indeed out" I rather doubt it, at least not in this market cycle. Although I will not change my (underperforming) strategy generally I have changed it in one detail. I will only buy value stocks that are leaders in their business. I will no longer buy a second tier company (in an industry) that carries a low valuation unless I can clearly identify a reason why someone might want to buy that specific company -- the focus of the revision in my strategy. My reasoning is that I want to own value companies that some large company might want to buy (the leaders in their niche) and not be stuck relying on a turn in market sentiment that might never come. This way, if the market sentiment turns I do well and if it does not I might still do OK if some of my holdings get bought. An example is COO, which is the leader in one of the two growing segments of the contact lens market, Toric lenses. It has had low valuations until recently and I know the company would be an interesting acquisition for 3 larger companies in its industry.

To: Michael Burry who wrote (8156)	9/5/1999 9:00:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 78842

I'm looking at General Cigar on Mike's recommendation and one even Mike may have given up on, Champion Enterprises. Probably would have a hard time buying it because I already own so much Clayton. But I am looking for a recommendation in the manufactured home sector for my firm - it will be either Clayton or Champion. Both look pretty attractive. JJC