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

To: Jurgis Bekepuris who wrote (44506)	7/21/2001 10:21:53 PM
From: Dinesh	Read Replies (1) \| Respond to of 54805

Hi Jurgis I agree with you in that the total return always depends on not only the quality of the tools one has at his or her disposition but also on the amount of effort one is willing to put in learning how to use them. I have found Lynch's book to be an excellent guide for one to develop a personal framework for investing -- something that darbyc apparently was groping for. He had started investing recently, went with the flow and didn't know what to do when the total return started going negative. No doubt many of old time investors had similar issues in their portfolios. But they had learned to deal with it. In other words, they knew why they invested, they understood the risks, their ability to cope with the risks, and finally not totally fall apart if those risks do materialize. This is what I like to call a framework for investing and it is a very personal thing. What sector one invests in, and what vehicle one picks for that purpose are mere details within this context. Lynch's book made one aware of these issues and forced one to reconcile with them. Therefore, my recommendation for the book. I like Peter Lynch, so I should also like to point out that he did not recommend merely buying what one knew but to use that as the starting point in beginning one's research. I don't think there is anything wrong with that advice. What would you rather have darbyc buy? How can he investigate a company/area without having a sense for what are the various toronados buzzing around, leave alone the odds of spotting one? True, it will limit one's investment horizons a bit but that can hardly be such a handicap. To wit, Buffet has made a point of not investing in computing technology (to distinguish it from say bottling technologies) even though it has served many an investors quite all right. I do tend to agree with you that most good books on investing are supposed to be incredible bores. This is but human nature and only means better odds for people with a little bit of patience ::) regards -D