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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (52676)	5/9/2001 11:59:52 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 77397

Here we disagree. First of all, no crystal ball. The best you can do is pick long term winners and hold them while they are winners. Ruthlessly discard them when it appears that their time is over. The key word being "appears". The whole tech wreck was signaled. CSCO was signaled on this thread. Most people spent so much time and energy shooting messengers that it went all but unnoticed. I really think you should go back and review a month's posts from a year ago. Quite educational. Perhaps a year from now you will chide me similarly... lol.. If you can afford otherwise, you should avoid DCA. It is precisely what the market wealth transfer function relies upon. Indeed, DCA straight through a bubble or a bear market is a losing proposition. Easy to do the math for CSCO, no dividends to worry about. DCA holders depositing a constant amount weekly at the close, 3 Feb 1997 to now would have a cost base of $16.4364 per share. So today's price is what, less than 25% gain over 4 years? Or less than T-bill yield? Might as well DCA into a bank account. As to the best thing to do re. market shocks? There are numerous schools of thought on this. You say "hang on and ride it out". Fair enough, I hold 350 shares of Laidlaw, following this thesis precisely. So I could not fairly call you a fool without so labelling myself. But these stand in my portfolio more as a diploma than as a prudent investment. I don't think I will go there again myself if I can help it. I lived on a farm, where cute calfs grew up. No sense becomming fond of dinner. John.