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To: B Tate who wrote (14608)	1/16/2000 3:48:00 AM
From: B Tate	Read Replies (2) \| Respond to of 118717

Sunday afternoon time on my hands. In reading a lot recently about the "value" we all place on the market a couple of things come to mind that may or may not be causal or important. As a 57 year old investor, with several years in the market, my goals are substantially different than the last generation's. My dad at 87 is still an active investor and worships dividends always has, and always will. Years ago he started investing for his retirement. The basis of retirement planning was cash income. Period. Along with his three vested retirement plans funded by employers and his SS, his investments have provided a very nice income for he and my mom to live on these 32 years since he finally laid down his pencil. On the other hand my goals are capital appreciation. Period. When (if) I retire I will be able to liquidate any appreciation at a much lower tax rate and live off the proceeds along with my military retirement and SS. The difference in the two styles can be put simply (in my simple mind anyway), I would rather not have the company supply me with dividends but plow them back into the company to fuel future growth and expansion. My generation (early boomers) are more of the entrepeneur than my dad's. Having lived through the "Great Depression", he values 'the bird in the hand' much more that the potential future. We will be moving them to a retirement community in Feb. and are trying to convince him that the paint cans full of silver dollars and the gold coins should be in a bank, not in the cellar! "...but I can always get to it to buy a loaf of bread and a quart of milk..." In reading some of the articles posted on Wexler's thread along with some others, the debate stems around P/E, P/S, P/CF, P/BV and dividends. Are we at absurd levels?. I don't believe so with the exception of the inuts. Granted the inuts have a huge impact on the NAS, but there an awful lot of stocks out there without the inut multiples. However the decrease in 'average' dividends is interesting. Companies are reacting to the investor's requirements and putting the money back into the companies fueling the growth we demand. In looking at the various ratios does a decrease in dividend by one half verify the P/E expectations of increasing by half?? Does P/S being cut in half relate to higher P/E ratios?? Is GE a good investment for my dad? Probably not. GE price 151 P/E 48 P/S 4.6 P/B 12.7 P/CF ?? (not an accountant) Div.yld 1.09% Is it a good investment for me? Very likely. Would be great if they took the dividend and bought Yahoo though! bt