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

To: Mike Buckley who wrote (35514)	11/28/2000 11:08:52 AM
From: BDR	Respond to of 54805

<<Why would I need an offset to tech stocks that have come down this year? I don't invest one year at a time.>> The time frame is important, as you have pointed out many times. A year ago many people were asking what's the point of value investing with everything tech going up at a great rate. Pick a short enough time frame and any methodology can be made to look silly or brilliant. The past eight months have sown seeds of doubt in many a reader of this thread and I am sure a lot of lurkers have moved on. But, if one's time frame is short, then one is condemned to constantly, fruitlessly chase after the next hot methodology or sector based on yesterday's results. Perhaps the decade prior to 1998 from which most of the case studies in TRFM appear to be drawn will prove to be too narrow a time frame but the theory still seems pretty good, despite events this year. Earlier I posted a clip about the sale by Fidelity of many positions in the tech sector. Fidelity's stock selection has little to do with Gorilla Gaming. For heaven's sake, they bought and/or sold shares in 2800 different companies last year. What selection criteria were they using, if any? My point in doing so was to illustrate that external events can have an impact on any method of stock selection in the short term. Whether you use Gorilla Gaming, Value Investing, Technical Analysis or the advice of a Root Doctor, if you bought stock in a company at the same time that Fidelity decided to unload a $1,000,000,000 position in that same stock, you might come to doubt the validity of your methodology. In the short term. Finally- criticism of the extensive use use of margin is valid, but the use of margin by an individual employing a particular stock selection methodology does not invalidate that methodology.