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

To: tekboy who wrote (43760)	6/21/2001 4:36:30 PM
From: Pirah Naman	Respond to of 54805

what would you say about a case like Curly's Curly is making his decision based on multiple factors. People may combine multiple factors in their decision making. That doesn't mean that the individual elements are any less distinct. It isn't that Curly's "valuation' (really pricing) is part timing, but that his decision results from his use of both factors. - Pirah

To: tekboy who wrote (43760)	6/21/2001 5:17:20 PM
From: Seeker of Truth	Read Replies (1) \| Respond to of 54805

There's a mistaken assumption among many of us that we all want to maximize our return, regardless of anything else. Actually, lots of people want to think about other things than the market, and need peace of mind for this so valuations must differ, depending on the outlook and knowledge of each person. We want to optimize a mix of return and serenity. John Shannon is serene because inflation will give him some warning whereas stocks give no such warning. So meanwhile he is holding his money, not making or losing. That gives him peace of mind. I can't believe that his desire for peace of mind doesn't give him a bias towards selection of bearish data. Of course we would be idiots not to examine his data respectfully, but each of us seeks a compromise between valuations based on the short term and valuations based on the long term. Which gorillas we choose and how much cash we hold, how much ballast we have in the form of more conventional, non-gorilla stocks etc. all must fit with our history, our special knowledge and ignorance etc.etc. What calms one person won't calm another etc. I'd like to repeat my strong belief that if one keeps a ballast, sells when the valuation is excessive, and picks gorillas at decent prices then long term investing will produce excellent results. My own experience is that even though I didn't pay enough attention to valuation, the long term still has saved me, and the stock market is decidely rewarding.