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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (6534)	9/18/1999 11:46:00 AM
From: Uncle Frank	Respond to of 54805

>> I try to stay quiet when I don't really have anything useful to add That's why your posts are "must read" for me, LL; you are very economical posting, but when you do, you make sense. >> The market doesn't care what you paid, and waiting to "get even" is usually just a way to avoid admitting error. That appeals to my unfortunate MoMo tendencies, Lucius <g>. The problem with the "I haven't lost anything because I haven't sold yet" stance is that it ignores the permanent loss of the most valuable asset an investor has... time. uf

To: mauser96 who wrote (6534)	9/19/1999 6:04:00 PM
From: uel_Dave	Respond to of 54805

Lucius <<One of the most difficult lessons a neophyte investor has to learn is that it doesn't matter what he paid for a stock ( tax consequences aside). The market doesn't care what you paid, and waiting to "get even" is usually just a way to avoid admitting error. Letting your ego control your investments can be very expensive. >> Lucius, I can certainly relate to your above statement, although I have had some winners that I let run; such as WCOM, NT, BCE, JDSU ..... It is the other stocks; mid-caps and microcaps that have hurt my portfolio. Although I have been investing in mutual funds ( all sold now )for 10 years, I have only recently ( 2 years ) started to buy individual stocks. I relied on advise from family members, which suggested two different strategies ; buy and hold and invest in growing companies; i.e mid caps ( shiny pebbles ). What I learned from the G&K thread and especially Lindy Bill was to sell your losers and to add to your winners. I think of this as portfolio rationalization, which we do in Time to Market portfolios with projects. It is certainly difficult to sell a loser in a RRSP, but if the fundamentals have changed and there is a better place to put your investing dollars, then do it. The power of QCOM, MSFT and CSCO will more than make up for past mistakes ( and that is what they are and you can not wait forever for breakeven or should not average down ). An interesting point that Lindy Bill mention in one of his PMs to me, was after you sell these shiny pebbles, you never look back. You focus on the future of the new business that you have bought. It is one thing to get advise and another to execute / implement. Thanks to Lindy and others, I was able to do some great portfolio rationalization to save my capital and re-invest it into a hypergrowth company such as Qualcomm and participate in great stock appreciate over the last few months. In summary Lucius, you can not get even, however you can change your strategy and the gorilla one is the best one that I have found to date and we are fortunate to have people like : Lindy Bill, Uncle Frank,Mike Buckley and al to help and educate us through this great investing strategy. Thanks, Dave