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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: StockHawk who wrote (78093)	7/29/2000 3:40:21 PM
From: Art Bechhoefer	Respond to of 152472

The fallacy with looking at long term average returns for investors is the assumption that an individual investor can do no better than the overall market in the long run. This is the essence of "random walk" or "efficient markets" theory. But as noted in your comments, individual companies such as QUALCOMM tend to outperform the averages by a wide margin, simply because their earnings growth is higher than average. There is no basis to assume that an investment in QUALCOMM in the long run (e.g., the next five to ten years) would do no better than an index fund. In fact, just the opposite is true because of the quality of QUALCOMM management and the extensive patent portfolio--characteristics that the average company lacks.