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To: jeffbas who wrote (9590)	1/10/2000 10:48:00 AM
From: cfimx	Respond to of 78742

Jeffrey, I agree with you. I think it makes a lot of sense to do real business analysis instead of resort to a mechanical formula. But when you combine the two methods, as James and the other thread participants do, you are really creating a margin of safety for yourself.

To: jeffbas who wrote (9590)	1/10/2000 10:49:00 AM
From: LauA	Read Replies (2) \| Respond to of 78742

I don't buy basketsful of anything. If over 30 years of sophisticated investor experience does not count for anything in selecting a moderate number of the stocks I believe will deliver excellent returns, I might as well hang it up. Seems to me that the issue of buying 'baskets' of stocks is a statistical method to plow around the fact that linear analysis fails in a non-linear system. Some would call it 'setting your net wide'. Successful practitioners might include Graham-Newman Corp, Walter Schloss, and Peter Lynch. Hagstrom has called attention to focus investing, which in my argot might be termed 'setting your net narrow'. The Hagstrom set of focus investors includes Keynes, Buffett, Munger, Ruane, and Simpson. His 1999 book credits none of these "Superinvestors of Buffettville" with more than 27 years of performance. Lau