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

To: Bruce Brown who wrote (50560)	3/1/2002 4:07:55 PM
From: Uncle Frank	Read Replies (3) \| Respond to of 54805

>> That being said, valuation considerations remain as well as the perception of those valuations. Ah, the old entry point argument. I made the following observations in an exchange with a trader on the qcom thread: ----------------------- >> If you are truly an LTBH type, then you know that the price you pay determines your return... The lower the price, the higher the return. Tada! Isn't that true for traders, too? Actually, it's more important for traders. Return percentage isn't the dominant metric for judging long term holds. If you bought 10,000 shares of Cisco at .50/sh in 1991, it would be worth $148,400 today and you would have a return of 2,868%. If you paid $.75, the return percentage would crash to 1,878%. While that seems to be a huge difference, the higher cost purchase only left $2,500 on the table against a potential profit of $143,400. In reality, a trader who bought 10,000 shares of csco in 1991 at .50 would have sold it at .60, and never bought it again because the value investors would have convinced him the price was too high <gg>. Tada! uf