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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (10058)	2/25/2000 12:46:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78625

I'm with Mike on the issue of "you've got to buy at least a couple of tech highflyers just to participate". Am I tempted? No. Even a little bit? No. Do I wish I had bought a few of these two years ago? Or even a month ago? Of course, but I didn't. I find it ironic that just as the broader market - and especially value stocks - is really getting favorable for a value investor, value investors are getting tempted by the mania. You wonder why the Dow goes down 150 points and the Nasdaq goes up 100 points on the same day? This is why. We've got to be near the end. The end comes when everybody who is left to buy has already bought. Somebody is going to be the last one to buy into this game of greater fool and take the cake as the greatest fool of all. Its not going to be me. Wouldn't it be ironic if it is value investors that provide the tech mania its greatest fool? I know this game on the other side, when a stock collapses and the last sellers at the bottom are value investors who should have known better, but are terrified. Same effect at the top, I presume. When investors who know better stay disciplined and stay disciplined, then finally give in. That's the end. In deference to the guys on AOL who bought these tech stocks 2 or 3 years ago, I mean fool in the lowercase. If they're as smart as they were then (and I'm not at all sure they are) they will be the ones selling to you. The value discipline is fairly simple. Buy things for less than they're worth. Period. If that's not working at the moment, have patience. I know its hard now - I'm getting killed too and since I do this professionally I've got a lot more at stake in it than money. Now is not the time to compromise. Now is the time to be ordering annual reports from your 50 dream investments that "never" get to your price and start picking prices. Or just look at what is in the litter box right now - there are a lot of great companies out there trading at really cheap prices. I bought a little more Berkshire Hathaway today, and I am looking at Merck and adding to SNH whenever I can put two nickels together.

To: Michael Burry who wrote (10058)	2/25/2000 2:35:00 AM
From: Marc Fortier	Respond to of 78625

The outlook for Mattel looks grim to say the least. I still hold a small position through the DRIP. Like you I may unload this one in the near future, but hasn't made up my mind yet. As for discipline, well, you sound very Buffett-like when you talk about it... and I don't say it negatively at all. In fact, I admire you to stick to your principles. I just can't follow the same strategy. Too tough and frustrating. Anyway, as I said, I still believe in value and holds to my TR, DCI, FUN, MO and GBT.a (TSE). In the long term I am quite confident that they will perform well. Furthermore, at current valuation I'd be glad to add to my positions if I had some cash to invest. MF