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

To: tinkershaw who wrote (27575)	7/10/2000 1:29:29 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> So for me it only works when I'm very disciplined and the companies I deal in are of the highest caliber, most powerful sort in the world... My latest buy was AMCC. I must have missed something here, Tinker. Are you suggesting that amcc is one of the "highest caliber, most powerful" companies in the world? If so, I'd encourage you to submit a Project Hunt report on them so we can share in your understanding. uf

To: tinkershaw who wrote (27575)	7/10/2000 1:53:37 AM
From: Jacob Snyder	Respond to of 54805

re: I have made a killing ONLY when I've been very disciplined and stuck to the BRCM's, Qs and RMBS of the world. That is exactly my experience. Most undervalued stocks deserve it. Most out-of-favor stocks continue to disappoint. Mostly, the market is right when it crucifies a stock. Buying value, buying stocks the market hates, only works if the market is acting on short-term reasons, things that I am 100% sure will inevitably go away within a year. That level of certainty is difficult to attain. A large fraction of my mistakes were because I bought second-tier companies, when I should have bought the industry leader (at a PE twice as high, and worth it). I learned this lesson, finally, in 1997. On an industry downturn, I picked CSCO over the other 3 companies making network equip. I can't even remember their names now, but they had PEs half that of CSCO, and I almost bought them. Often, buying the company with the highest PE in the industry, when the entire industry is out of favor (and all their PEs have been chopped in half), is the safest thing to do.