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

To: Uncle Frank who wrote (89359)	12/7/2000 1:21:10 PM
From: ratan lal	Read Replies (1) \| Respond to of 152472

UF There were a HUGE drop in 1994, and someone who bought at the highs would have been devastated if they were investing with a short term window. But anyone who bought at any time in 1994 and held as briefly as 24 months would have realized an incredible return. Imho, deciding when to sell has much more importance than deciding when to buy Consider that a mere 16 months ago, I bought my starter position at 13 3/16. Do you offhand know the valuations of QCOM and NTAP in the relevant time periods mentioned above?

To: Uncle Frank who wrote (89359)	12/7/2000 1:25:11 PM
From: Keith Feral	Read Replies (2) \| Respond to of 152472

It depends how you define diversification. This concept has no meaning unless you talk about asset allocation. Diversification among other G & K names does not constitute any meaningful change in risk profile. If you take some QCOM and diversify into a basket of equally volatile tech gorillas, you really haven't done yourself any favors this year. When the market takes us hostage, you need to own seperate asset classes - banks, energy, bonds, et... The principles of portfolio are designed to identify non correlated assets that move in different directions.

To: Uncle Frank who wrote (89359)	12/7/2000 2:40:20 PM
From: waverider	Read Replies (7) \| Respond to of 152472

OK Frank...thanks for your response. Very well reasoned. So basically you are saying that once you have identified your winner companies, you have no interest in selling due to an over priced situation or buying as cheap as you can? On the surface it sounds like these things are obvious, but in practice they are difficult to pull off. So buy just hanging on until fundamentals have changed is your basic strategy, if I am hearing you right. OK, let me ask you a question then...IF we get into similar valuation levels like we did with QCOM or NTAP in tha past and consequently your % of each over shadows everything else in your portfolio...would you consider cutting back? If so, what levels would you consider extreme? Met with my accountant last night to make last minute plans for this year's taxes. It finally dawned on me how much the government really takes. A real life situation I face right now is that if I buy back the puts I sold on QCOM this month (which I plan to do) I am talking a major tax hit. Say my profit is $10,000. I will have to send Uncle Sam and the state two checks totaling $4,100 by the 15th of January. That means I will have to sell some equities to do so. I DO NOT WANT TO DO THAT! In fact I am basically prevented from making anymore money due to trading until month (for 2001 tax year) because of our financial arrangements. That pisses me off Frank. And it pisses me off that the market make us consider these kinds of problems of overvaluation. Rick

To: Uncle Frank who wrote (89359)	12/7/2000 2:47:31 PM
From: shamsaee	Respond to of 152472

<Imho, deciding when to sell has much more importance than deciding when to buy.> I think that is the most important thing one has to learn if you are looking at investing in the market.We all tend to fall in love with the mania and hold stocks and even add to positions when a stock keeps going up and lose sight of what fundamentals and the future justifies. <The other lesson I've learned this year is that portfolio management is every bit as important as stock picking> Still working on that one. So far I have found selling half my positions in stocks that runs up beyond my expectations as a good way of staying invested in the company to benefit from any further stock appreciation and also guarding against a collapse in the stock.