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

To: Bruce Brown who wrote (34219)	11/2/2000 1:40:51 PM
From: Uncle Frank	Read Replies (6) \| Respond to of 54805

>> "Why you should forget timing, use a buy'n'hold strategy." Bruce, you bring a wealth of information to this thread from your own investing experience and also from the Motley Fool, where you chair their Gorilla Game thread. You squired over here ages ago, and the only thing that's delayed a well deserved promotion to Knight of the Round Table has been concerns that you were spread too thin. But you've proven over and over that we can count on you for sage counsel whenever the need arises. By unanimous vote of the Round Table, we'd like to welcome you to our ranks. You represent the first to hold dual citizenship in G&K and MF, which is a tribute to your skills and your incredible energy. The honor is ours, indeed, Bruce. Please join with me in welcoming Sir Lyre to the ranks of the G&K Round Table. uf

To: Bruce Brown who wrote (34219)	11/2/2000 1:51:08 PM
From: mauser96	Respond to of 54805

Let me second what you posted. The inherent trouble with frequent trading is that to a certain extent it depends making serially correct decisions. A strategy that depends on each decision (read educated guess when the stock market is involved) having a significant impact on the next is bound to eventually to result in contiguous errors. It doesn't take too many of these to have a very deleterious effect on your wealth. In contrast, properly applied gg investing requires only limited decisions. Selling means not only decisions about the stock you are selling, but a new set involving what you are going to buy. All of these need to be at least partly correct for it to be a winning trade. The end of Bear and Bull markets are easily viewed through the "retrospectroscope" but are a lot less clear in real time. That's not to say that you can't withdraw money from the market during speculative periods for living expenses or for a cash reserve. This is a one time decision, not a serial one.

To: Bruce Brown who wrote (34219)	11/2/2000 1:52:03 PM
From: Justin C	Read Replies (3) \| Respond to of 54805

G&K index is up 34% at the moment YTD Indeed an impressive return for '00. But it assumes an equal dollar investment in each of the 10 G&K stocks at the beginning of the year, which is problematic for anyone who had a large QCOM holding. I'm wondering if the QCOM experience has prompted anyone here to do an annual portfolio rebalancing going forward, particularly with tax deferred accounts?

To: Bruce Brown who wrote (34219)	11/2/2000 10:54:30 PM
From: 100cfm	Read Replies (1) \| Respond to of 54805

Sir Lyre Great post but I think I'm being misunderstood. I am no proponent of trading. Especially since I have not sold a single G&K stock since I discovered the G&K thread. I was trying to make a point at which I obviously failed at, that different strategies are better in certain markets IF you are able to apply them correctly. Such as selling your stocks at the March high and selling Q at 200 and buying back at the lows and doing it on a consistent basis then that is a great strategy in a bear market. If one is talented enough to do it more power to them. What works in a Bear market might not work in a bull market and vice a versa. So for those who cannot apply the right strategy at the right time on a consistent basis, then LTB&H is the best longterm strategy even though it gets painful in a bear market like we have now. Especially if one is over wieghted in a particular stock I don't have to mention.

To: Bruce Brown who wrote (34219)	11/3/2000 5:18:11 PM
From: techreports	Read Replies (2) \| Respond to of 54805

[In his classic, "How To Make Money In The Stock Market," William O'Neil, publisher of Investors Business Daily, says: "During the last 50 years, we have had 12 bull markets and 11 bear markets. But guess what? The bull markets averaged going up about 100 percent and the bear markets, on the average, declined 25 percent to 30 percent. Not only that, the typical Bull market lasted 3.75 years and the classic Bear market lingered only nine months. Every single time the market recovered and ultimately soared into new high ground." Get it?] Sounds great...yet i've heard people say that if you bought the best stocks at their highs (before a crash) that it would have taken a investor over 6 years or so to get his original investment back?