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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: chaz who wrote (16165)	1/24/2000 10:42:00 PM
From: john99walsh	Read Replies (4) \| Respond to of 54805

chaz, >>For those who may be following, my margin strategy is to go no higher than 60%...which allows me to absorb a 40% market hit on the entire portfolio...and considering the overall market, economy, domestic and WW, and the powerful issues I'm in, I don't feel that's likely. During the year, as appropriate, I'll use appreciated buying power to add to present positions, using Russian Army trends, but will stay with the 60% margin level. I also use margin borrowing to magnify my investment returns. I think in terms of equity ownership which is defined as follows: G = Gross Value D = Margin Debt EO = Equity ownership EO = (G-D)/G To apply some amount of caution to my investing I have set a LOWER limit of 75% on my equity ownership in terms of when I will not borrow added money. The numbers then work out like this: D = 25% of G EO = (G-D)/G = (G - .25G)/G = .75 = 75% Now if all my stocks drop by a factor of two in value then: EO = (.5G - .25G)/.5G = .50 = 50% which is still within margin call limits. What I don?t understand at all is your comment about a ?60% margin limit? and how you will ?go no higher the 60%?. Could you explain? John Walsh PS: On a minor mechanical note, how do you post italicized text to SI. I edit in MS Works and then do a paste on my Mac and the italics are lost. Anyone?