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

To: Seeker of Truth who wrote (25833)	6/4/2000 4:45:00 PM
From: shamsaee	Respond to of 54805

<theorem such as every investor should have a ten year cash reserve before he invests in gorilla/kings of the tech world.> Malcolm I never said that.I said instead of trying to time a sell you can look at it another way by having a balanced portfolio of taking some money out of high percentage gainers on an annual or biannual basis and investing in less risky investments.Over a long period using LTB&H you will build a substantial amounts in stock holdings and also have a significant amount in cash equivalents that still earn interest and appreciate. Its not one or the other but a little bit of both.I am 33 today so I am looking at 90% G&K and 10% CD's,bonds,real state.I would reduce the stock holdings and increase the other the closer I get to my retirement.

To: Seeker of Truth who wrote (25833)	6/4/2000 5:47:00 PM
From: Mike Buckley	Respond to of 54805

I think it would be much easier to prove the theorem that Shamsaee should hold more cash or cash equivalents than to prove a more general theorem such as every investor should have a ten year cash reserve before he invests in gorilla/kings of the tech world. About 20 years ago a retired guy told me to have one year's living expenses in savings before buying a house or investing the money. Had I followed his advice, I might never have bought a home or invested in stocks. Everyone is in a different situation, but at some point we need to decide to walk the fine line of investing for the future and believing in our ability to be relatively, steadily employed. The irony is that there are darned few people who are going to be able to arrive at 10 years' living expenses in cash unless they first invest it in stocks. That's why the advice doesn't make much sense to me. --Mike Buckley