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

To: Madharry who wrote (9116)	12/3/1999 9:50:00 AM
From: Wallace Rivers	Read Replies (2) \| Respond to of 78582

Anyone considering GT at these levels? Fallen angel, still the leader in its field. No position, but mulling it over.

To: Madharry who wrote (9116)	12/3/1999 2:36:00 PM
From: Bob Rudd	Respond to of 78582

Armin: I believe Mike's performance supports the thesis that a small investor that learns the tools and methods of analysis and applies them well has substantial advantages over similarly well-informed and capable fund managers: The small investor, because of smaller positions, has a vastly broader investable universe - The fund manager with 100's of millions or billions must play in larger cap or experience excessive slippage acquiring and selling low liquidity positions For the same reason, a small investor can more effectively 'trade around [buy dips, sell surges] a low-liquidity position to lower average cost and improve returns [though most don't do this well] The small investor is no longer as relatively disadvantaged verses the professional, due to wide variety of tools and information on the net - screeners info that used to cost institutions big time are now free. The message boards give small investors access to what Phil Fisher called scuttlebut - perspectives of customers, employees, and individuals that have followed the companies and provide insights {Mike mentioned Ron Bower's extensive due dilligence in Deswell for example} I doubt that many professional analysts actively mine this resource [JJC being an exception] The smaller investor isn't generally following or holding 100's of issues and can thus better focus The small investor often has real world access and experience in certain sectors or industries that give advantage over institutional types [As has been cited by Peter Lynch] The small investor isn't under the gun to perform quarterly and thus chase hot sectors and ignore cool ones that contain the better values - sometimes out-of-favor investing looks bad in the short run, but manias do end badly and contrarian value strategies have stood the test of time The small investor has more flexibility to short than do fund managers The small investor can step away from the market or sectors that are overheated, but this is when the fund manager has the most money pouring in, and the small investor doesn't have to contend with redemptions when his chosen sectors are out of favor, but values are most favorable. bob