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

To: Shane M who wrote (2986)	1/30/2002 3:34:08 AM
From: Paul Senior	Read Replies (2) \| Respond to of 4690

Shane, I'm still mulling it over. My understanding now is that a subset of all stocks is found that have the criteria of being technology related and having sustainable competitive advantage (sustainable competitive advantage being determined by the tools of GG practitioners). As time passes, one's portfolio becomes more concentrated as the dominance of a few companies is rewarded in the marketplace with higher stock price or the number of candidates in one's portfolio is whittled down (if I understand the book correctly and/or what some people on the G&K thread have been doing). I am just focused on the number of stocks not the effectiveness of the GG tools in determining competitive advantage or where the play might be or might not be with those stocks (buy as value, hold, buy as growth, write calls, etc.) It seems to me - being a big believer in diversification - that this subset of stocks is too limiting. And thereby their practitioners too. For example, some of those guys are associated in my mind as apologists for GG - you almost never see them on growth investing threads, Buffett thread, value threads. Perhaps Jurgis is the only one who tries to bridge the various threads to find stocks or develop compatible or congruent methods for selecting stocks. On the other hand, it can be argued for G&K that it's not the number of stocks that one finds. It's how well the ones that are chosen work out. The Peter Lynch method of buying 5 or 6 stocks that you know about. Or maybe like that middle class family who sit in the Dell annual meeting who only have bought and own this one stock - but who bought early enough and who held on through all the vicissitudes and splits, and now own a ton of it. As I say, I'm still mulling it over. Meanwhile I see I own a couple of stocks in the G&K list (WIND and GMST) - they are down from my purchase price: they're only very small positions, I consider them speculations only, and I'm holding on to them. Of the stocks listed in the links, I see maybe one that might be of interest as a value stock for me (based on price/book), and none that I can see Mr. Buffett buying. If anybody else here has a positive opinion on buying any of these stocks now as growth or value investments, I'd be interested in reading it and re-studying my quick dismissal of these companies at their current price. Paul S.