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

To: Eric L who wrote (23166)	4/20/2000 11:12:00 PM
From: TigerPaw	Respond to of 54805

To thyne own self be true It sounds as we have similar portfolio tactics, it is the strategy where I may disagree. I think an investor needs to look at his stocks in a money equivalency standard. That is to say, since stocks can change price, they do not have the same value at cash. I consider most of my stocks to have 80% cash equivalency (options ~50%). I mean by that that I usually consider that they can vary +/- 20% from their current value, and I only count on the lower figure. Of course sometimes they get re-valued. I buy stocks, and I presume you do too, when you think there is a growth potential greater than interest income. Once bought, that decision was made! It may be good, bad, or indiffernet but the price paid at that time has no relevance to the future (except for the IRS - a special consideration at times). Whenever a stock takes a path different that you think it is imperitive to make a decision as to whether the stock valuation still fits within the expectations you have for the company. The original purchase price has no relevance to this determination, and if you let it have relevance it will lead to a skewed analysis. Sometimes you have to say "Boy was I lucky" or "Man, I paid too much" and then deal with the analysis from the current price. For me at least, the buying of a stock is often determined by when I have some money to spend. That is not a good basis point for making decisions on the future of that holding. TP (IMHO)