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To: Larry S. who wrote (22126)	2/14/2000 11:27:00 PM
From: DanZ	Respond to of 53068

If one uses beta as risk, I'd be willing to bet that Warren Buffet's risk adjusted return over the last five years beats many hi-technology and Internet funds that might even have higher absolute returns over that period. Over the long term, a portfolio that has a higher risk adjusted return should perform better than one that has a lower risk adjusted return, even if the return in the latter portfolio beats the former in the short term. This IMO, is Warren Buffet's strategy. Like Ron said, we all have our own styles and there's more than one way to make money in the market. I believe that many hi-technology stocks are going up on the last fool theory. Who will be the last fool to buy? People are probably using margin from gains in those stocks to buy more of the same stocks. The stocks go up and they have more buying power, so they buy more of that stock! At some point, these stocks will crash because everybody will want out of them at the same time and there won't be any bids. Once they start down, paper profits will turn into paper losses and margin calls will pressure them more. It's hard to put in a bid when you have a margin call lol. The market has a way of clearing out excesses in this manner. While I'm pro-technology, I don't think that future earnings justify the valuations of many hi-technology and Internet stocks. I'm much more comfortable holding what I perceive to be value stocks at this point in the market and interest rate cycle because I think that they offer a better risk/reward. I'm holding one volatile growth stock (GUMM), but only because I have a very good handle on the fundamentals and believe that the stock is undervalued based on future earnings. Based on risk/reward, I think that selective retail and financial stocks are the place to be right now. My way might not be the best way, but I'm pleased with my return and can sleep well at night lol. BTW, SKS looks like it might be turning up and CIT had its first inside day since crashing from the 19 area. This stock could be at a bottom as well.