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

To: freeus who wrote (24956)	5/18/2000 1:39:00 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

I'm on a "30 day no trading" contract with myself. Wish me luck!!!!!! Luck? You can't abide by a contract? I'll do more than wish you luck. I'll help you get through the 30 days. Draw up a contract in writing between you and me. Sign it. Include in the contract that if you make a trade, you send me a check in the amount of $100 payable to the charity of your choice and that I have permission to tell the thread about it. But you MUST send the check to me as fulfillment of the contract. (Embarassment might be more effective than dollars!) --Mike Buckley

To: freeus who wrote (24956)	5/18/2000 9:30:00 AM
From: Bruce Brown	Read Replies (2) \| Respond to of 54805

RE: Trading vs. investing.... Freeus, Mike and I are going to tie you down and do cruel things to you with a LTB&H investing manual. <ggg> Although I would be happy to dig up plenty of data to refute the theory that trading vs. investing isn't the way to go, let me just provide one little example which the Fool began back in 1995. There was a portfolio started in July of 1995 at the Fool by David Gardner called the "Simpleton Portfolio" and was a pretty tech heavy weighted portfolio of ten stocks. The idea was to buy shares of each and hold for 10 years, curtail transaction costs outside of the original purchase, defer cap gains, reduce the time costs of investing and to beat the market. It was in response to a Wall Street commercial run by Merrill Lynch on television at the time. There are still 62 months to go in this 10 year experiment, but to date, the market has been beaten, taxes have been deferred and transaction fees have been curtailed. Yet, Merrill Lynch is still running silly commercials saying the retail investor is foolish rather than Foolish. What have been the results to date from the purchase price in July of 1995 (58 months)? Here they are to date in order of return performance: Dell = +4,737% America Online = +3,186% Sun Microsystems = +2,768% Cisco = +1,773% Intel = +658% Texas Instruments = +642% Gap = +616% Microsoft = +498% Hewlett-Packard = +234% Silicon Graphics = -84% (You have to own one dog...) Not bad returns. Minimal transaction costs. No taxes paid outside of dividend income. Wall Street continues to preach how the retail investor shouldn't take charge of their own money and the mutual funds that continue to perform below the market continue to market and advertise that retail investors should send their money to them to manage and 'take care of' while we stay out of the know. Plenty of Wall Street will continue to preach trade in, trade out, trade in, trade out, trade in, trade out until the retail investor is out. Mutual Funds portfolio turnover rate is 70% on average. No wonder they perform below the market. They would do better having a few solid retail investors running their funds. <ggg> Freeus, if you could give your portfolio something like a nice 58 month or longer ride without trading - you just might be quite surprised how well the return is. Give yourself and your money more than a 30 day 'no trade' contract. Otherwise, Mike and I will keep coming back at you with data while we tie you down. BB