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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: SBHX who wrote (11365)	5/22/2000 9:56:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 60323

Scared: Well, as long as I'm on probabilities, I'll challenge you as well -g-. "All textbooks on this say take profits when you have made a big gain"? ALL? 100%? You're sure? You've checked each one? First of all, I'm not sure what you mean by text book? If it's something that's written by professors of finance, guys who maybe specialize in modern portfolio theory, or some such, "maybe" it's true. But those guys maybe also are people who are not known for making money. Aren't there some people who've written that an investor might want to let his/her profits run? Peter Lynch? How about Loeb, in "Battle for Investment Survival" (the guy, so people tell me, credited with putting all eggs in one basket and watching it). How about Warren Buffett as in "the best time to sell? Never" (if the stock is chosen properly). He credits Phil Fisher (successful investor and author) for this. Here's what I say: It seems commonsense to take some money off the table and rebalance when the particular stock has risen way out of line. That's for somebody though or maybe, who's got a decent size and diversified portfolio and maybe isn't trying to hit a tremendous home run. But for somebody who might be a part-time investor, who might not follow stocks or the stock market too closely (say the person who only works at Wal-Mart and only has Wal-Mart stock) or the person who really follows a stock like SNDK very, very closely and who knows the risk of concentrated portfolio but who also wants to try to do much better than average, better than a particular index, then that person should not necessarily take profits because the particular stock has gone up 10 or 20 times if the person still believes there's more potential to the company and that the dollar profit amount still has not met the person's goals. jmo, Paul Senior, who is not concentrated in SNDK