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

To: Dale Baker who wrote (14271)	4/5/2002 6:37:07 PM
From: Brendan W	Read Replies (1) \| Respond to of 78750

Dale... I take the opposite approach. I take all the risk in my Roth and the long-term conservative stocks in my margin account. Simply because my turnover is higher on the riskier portfolio and I don't want "the government" cutting my compounding by taking out its 30 - 40 whatever percent. Also, conversely, my Roth is stomping on my margin account's performance. I treat the margin account as a place where I will only put assets that I am willing to hold for a year to get the favorable capital gains treatment. FYI, under present regulations I don't do shorts. I rarely do options. You wrote: >>>> An interesting wrinkle from last year - I have two portfolios, one taxable with two accounts and one non-taxable IRA. Because the IRA does not allow shorts, options or margin, I am forced to "behave" and stick to plain stock buying and selling. I also tend to buy more conservative, long-term development stocks.

To: Dale Baker who wrote (14271)	4/5/2002 6:45:53 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78750

Dale, in the same vein. It's funny how it's often a surprise to people that when they manage their parents' funds, how much better those accounts seem to do than the kids' management of their own funds. It's because the children respect the likely conservative wishes of their parents - maybe no short-selling or options trading for example. Also because the kids know they may have some 'splaining to do if a position goes wildly wrong - esp. if it's a large (concentrated) holding. And maybe because they (the kids) avoid dinky companies that nobody ever heard about or whose products can't be seen or understood -- because they (the kids)know that they might have to justify to their folks exactly why they spent their parents money on it. I wrote this up here a few years ago, and ever since, some of us mention stocks we are buying as suitable for a "Mom's account" -- one that a mother would understand and approve of. CWT, one of my recent picks, is one for example, imo. Paul Senior Apologies if I've offended parents "of a certain age" or anybody else by stereotyping them as conservative or risk averse. Also, sorry if I offended any mom who would be appalled at owning such a stock as CWT -g-.