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To: dbblg who wrote (84499)11/18/1999 8:22:00 AM
From: Victor Lazlo  Respond to of 164687
 
Ganesh, it seems to me that in this market, anything with real net earnings that are growing would be classified as low (or lower) risk !

Victor



To: dbblg who wrote (84499)11/18/1999 1:18:00 PM
From: Randy Ellingson  Respond to of 164687
 
I have been struggling with this for a few years now, and would be interested to hear how you (and any others on the thread) approach it.

Low beta is a good place to start. But if you look at the portfolios of long-term buy and hold investors who have crushed the market, you'll find that they own stocks which are alarmingly volatile. When the market drops 10%, they may see their port drop by 25% or more; the flip side is what happens on the way up. Big returns appears to require big volatility. And the obvious hitch is that you have to choose the right stocks (companies).

Randy