Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Shane M who wrote (2525)	6/14/2000 10:02:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 4690

IMO, everyone thinks of their IRA/tax-advantaged accounts as the "sit back and forget about it" accounts. I have harped on this irony for years. Given my type of investing, you'd think it would have hit me like a ton of bricks, and it did. I am an aggressive unapologetic value-based trader in all my non-taxable accounts. Everyone should be. As Jim said, it's a big, exploitable advantage. I think even Buffett more or less said so when he said he could make 50% a year if he was smaller (I am guessing he might agree that most chip shots are of the microcap, and hence ben graham, variety.) In my taxable ones, I'm a bit more apologetic. If it fits one's personality and stock-picking ability, then the advantages are obvious to a buy and hold strategy, though. As you might guess, I don't think that risk necessarily equates with potentially tradable, i.e. "Graham" or "Buffett I" stocks. Good investing, Mike

To: Shane M who wrote (2525)	6/15/2000 4:17:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 4690

Shane, I think the retirement account issue is really a personal one. I have a very small pension that I accumulated when I was an employee. The rest of my retirement funds are the result of personal savings in an IRA and Keogh. (I'm self employed now). I would be much more willing to trade and be fully invested in my retirement accounts if they weren't my sole source of retirement security. A Japanese type debacle in the US could be disasterous for me if I was fully invested in both retirement and non-retirement investment accounts. And to be honest, I don't see a US debacle as a small risk. I see it as a strong probability eventually. I'm trying to find the balance between taking advantage of the tax-deferred status of a retirement account and not doing anything foolish. I'm buying the cigar-butt types on a limited basis in the retirement accounts and the core holdings in my regular investment account. But I'm still not sure this correct. I may be better off waiting for the core holdings in both accounts. This environment has me a bit confused because many second tier companies that I've thought were decent values have rallied back so quickly that it seems crazy to let them get away if you can trade them. Yet how much of that is related to the current equity boom and easy money and how much is related to a legitimate long term approach. I don't want to be seduced into doing stupid things just because they've been working during a once in a century aberration. Wayne