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

To: Stock Farmer who wrote (43733)	6/21/2001 12:00:58 PM
From: tekboy	Read Replies (2) \| Respond to of 54805

Clearly you're a pretty traditional value investor, which is an entirely respectable thing to be--since if any non-indexing strategy has a legitimate intellectual and practical pedigree, value investing does. Still, most of us around here are LTB&H growth investors, who strive to profit from long-term secular increases in earnings based on company-specific outperformance (i.e., something akin to a tech-oriented version of Buffett's approach combined with some Lynchesque ideas). That is why we spend the bulk of our time concentrating on identifying the factors that might lead to company-specific outperformance (such as durable competitive advantages), and generally give valuation issues a secondary rather than primary role in our thoughts and decisions. It's not necessarily that we consider valuation unimportant, especially for individual buy/sell decisions, but rather that we are not as sure as you seem to be that it is easy or even possible to identify and profit from broader macro cycles (of the economy, valuations, or whatever). Moreover, many of us have found that an LTB&H-oriented perspective has the added advantages of reducing the number of decisions we have to make correctly in order to profit and reducing the negative impact of emotional volatility (the well-known fear/greed cycle) on our portfolios. So, to each his own, and may both approaches bring happy returns over the years to come. tekboy/Ares@bigtent.com