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To: Seeker of Truth who wrote (3404)1/20/2000 9:03:00 AM
From: badon518  Respond to of 6018
 
malcolm, one advantage of a plain vanilla buy and hold strategy is that after a few years of great returns, even a crash that wipes out half or more of the value in one's portfolio will still leave one ahead... as long as one isn;t margined too far, etc. i'm hoping that my stocks appreciate enough before then that when it comes, i, like you, will be able to comfortably ride it out.



To: Seeker of Truth who wrote (3404)1/20/2000 11:10:00 AM
From: manohar kanuri  Read Replies (1) | Respond to of 6018
 
Too many people worried about over-valuation. Ergo nothing calamitous will happen in a hurry? Who knows. Your portfolio will drop by half at some point and you'll hold through it all? I have some idea of your investing parameters/style so that's okay, but when I hear the same from friends and family who own chunks of high-flying junk.....seems there's no difference between holding Berkshire or Presstek (example) through thick and thin.... I worry.

Can we do a poll of cash positions to get an idea of real worry levels? I'll kick it off by saying mine is embarrassingly north of 50%, though less from worries of outright crashes than from attempts at trying to be ready for buying when market does correct/crash/contemplate its navel. As a coconut farmer I'm always high on cash in any case; only more so now.