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To: kas1 who wrote (4420)	9/18/2000 9:12:04 AM
From: Mehitabel	Respond to of 10934

Thanks, Kas. It's always useful to me to hear what other people do. As you say I am certainly very eager to hear what others have to say. I am always, always learning. Having said that, I will take your remarks as an invitation to reciprocate, tho I'm afraid we agree pretty violently. I mostly follow Philip Fisher's investment advice, which is to find a high-growth industry and buy the #1 company in it, and then hold on to it as long as this continues. I never sell without buying something else at the same time. So I only sell when I think I have found something better. These are my always-rules, but I also use G & K to try to understand an industry and its growth. Investing in a company just going into a tornado is a terrific thing when you can do it. I've only done it once (NTAP last year). I never buy a company whose customer is the consumer (too fickle). I try to buy a company whose customer will save money by buying the thing. The "thing" has to be easy to sell. I want to be able to "see" growth continuing over a long time. The idea of CAP is an important one. I check for high barriers to competition so the #1 position can continue. Like you, I never buy #2 (and this year some #2 companies in the fiber channel switch market crashed rather dramatically) I reject companies for a lot of the reasons that you do, including too much "personality" and a history of negative surprises. (Both of these exclude ORCL :) I also exclude any company if I don't have a lot of confidence in the growth continuing for a long period of time, or if I just feel uneasy about it for unnamable reasons. I usually "inch" in, starting with a small position and adding to it over the next several quarters as I gain confidence in it. The things I study most carefully before buying are the industry growth and the likelihood of it accelerating and continuing, company growth and position in the market, and barriers to competition. I will admit that over the last several years, my idea of what is an "appropriate price" to pay has undergone a lot of change. :) Thanks again for your reply. It's useful to me both to hear what other people do, and to articulate my own doings. warm regards