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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Night Trader who wrote (13384)	11/27/2001 6:59:29 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78476

Well I do have favorite stocks. But I find if I make bigger bets on them than I ordinarily would, ofttimes these are just the stocks that turn out so poorly and stay that way - regardless of what appealed to me - favorable financial ratios, insider buying, etc. There are more small caps than large caps, so maybe there are just more opportunities for inefficiencies with small caps. The argument could be that there are fewer analysts or funds who follow them too. I don't buy that. If I see small caps I like, I very commonly see value funds with positions in those stocks or their analysts recommending those stocks. All it takes is a couple of analysts or a couple of funds buying small amounts to markedly reduce any prior inefficiencies in the value. Many stocks mentioned here have been large caps that people believe to be inefficiently priced. Berkshire last year, Honeywell, some food companies come to mind. While those opportunities may be rarer, the presumable business power of those companies suggests that larger bets can be made on each of those type stocks than might be prudent with a small cap stock. (I'm not saying I make larger bets the larger the market cap or market power of the company, but perhaps I should.) Paul Senior