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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Dr. David Gleitman who wrote (32817)	9/14/2000 9:22:02 PM
From: bonnuss_in_austin	Read Replies (2) \| Respond to of 35685

Hi, Dr David ... you've surely got me thinking ... ...about what strategy I use (would never recommend to anybody else <g>) in trying to build net worth as primary goal (I'm assuming that is yours as well as you are still working -- practicing medicine, right?) I'm about 1.5 years into managing my own accts (full-service brokers 3.5 years before that, from whom I really feel I learned a lot, and those were pretty decent years for ANYBODY in market, okay? '95-98/99). Everything I have (exception, equity in home) is still gauged on LTB&H strategy. DIVERSIFICATION is a must, I STILL believe. Not only in equity, but in INSTRUMENT. Mutual funds, yes, I have five in an IRA, with two 5-year UITs. I LIKE locking up those investments. Funds in 4 years are just now doubling. UITs a bit more aggressive (Internet tripled in two years; replaced it with bandwidth UIT -- 5 year this time). I don't 'fool' with that IRA. I'm sure you have similar long-term 'stuff.' Not to digress. I'm pushing my 'retail account' for early retirement. About 20 stocks/80% tech; most I've held 2-3 years now. About 20% of that I'm 'gambling' a la Voltaire's mo-mo pick style <g>. I've HAD TO sell several positions in that account over the past five years. Feeling I "HAD TO" sell is when I sold. What triggered this "have to sell feeling?" Significant BAD NEWS. Example: MSFT. Held and held (I think I bot it in '96) ... got a split or two ... then DOJ started ... still held ... last October I guess it was, the day the first news about judge finding guilt, I sold half. That piece of news to me was so significant that I felt 'ANYTHING CAN HAPPEN.' And I had no idea what would. Knowing the mkt hates uncertainty, sold. Same with QCOM. I only owned a few hundred shares that I bought late (I didn't see this board, for example, until February 2000 or I'm sure I would have bought in sooner <g> and probably had many of same experiences/expectations as so many here). The day after, I believe the China news came out, I sold all of it @ $99. At a loss (I think my cost basis was $120-30 range). That news, to me, was SIGNIFICANT, again, to the point where despite anything and everything I knew or didn't about the stock, company, general mkt conditions -- all of it -- made me feel that "ANYTHING CAN HAPPEN" and I don't want to risk it. This is what makes me sell stocks that otherwise I'd continue holding. I'm sure ... now that you have me focusing on it. THANKS! The higher volatility mo-mos, the more 'skittish' I am. (JDSU news buying SDLI scared me right out of some LEAPs ... that was part of my 'gambling' 20%). This RMBS situation to-and-fro regarding lawsuits is waving LARGE RED FLAGS at me ... again, I feel, "ANYTHING CAN HAPPEN." I'm losing that "in-touch" feeling ... that I have a fairly good idea about what's going on with the stock. Rather, the COMPANY, I should say. And as far as the CC strategy for me: I don't want to risk losing my SUNWs; CSCOs; GEs, even IBMs. For pocket change. Am also too scared to go heavy on margin to buy new stock and then sell CCs on it. I wouldn't be able to keep up with the accounting on it all. TOO MUCH! That's just me. Wow, now that I've delivered here a 'way too lengthy, disjointed bunch of opinion here, will end saying this: When I reach the goal that I consider sufficent money to live the rest of my life on (not very extravagant, really, because I'm so TIRED of the burdens of houses, possessions and "material goods," you know ... all that) will pull out HALF to 3/4 quarters and buy bonds and even money market/CDS, etc. That guaranteed interest income, paltry as it seems, certainly 'in volume' contributes at least to annual living expenses if not also to principal net worth. And let the rest ride as by that time, I'll be so burnt out on being umbilically corded to the Internet/TV stock market news machine AND message boards, I'll never want to see any of it again <g> ... can't wait! FREEDOM! It has definitely been a tough year all around, hasn't it, David? Rough. Best to ya, now, 'b-i-a' ###