SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?


To: Joan Osland Graffius who wrote (161289)4/22/2002 12:16:42 AM
From: GraceZ  Read Replies (1) | Respond to of 436258
 
I should be able to get 10% per year for taking the risk.

I agree, at the minimum. Whatever the safe yield on treasury debt you should be able to beat by at least several percentage points otherwise stay home. Plus preservation of capital should be a major concern, especially during times like this. One could hold large amounts of cash while still placing money in the market in those companies that will give you superior returns. You engage risk but that doesn't mean you engage in risky behavior.

Now don't tell me there are no companies that will give superior returns because I just pulled up 72 that returned in excess of 100% last year. I had this same argument ten months ago and people told me that all stocks were over valued and there was nothing worth the risk! They said this even though I demonstrated that over half the stocks that Yahoo puts in its database had returns of over 20% in the previous year. I just did the screen again and 2624 out of 6145 stocks with share prices of at least $1 had returns 20% and above. That's 42 percent of all actively screened stocks on Yahoo returning twice what you said you needed to engage risk capital.

70% of the Naz 100 is represented by about 30 stocks, yet people continually see the market as those 30 over used, over owned, over blown beasts. They don't even bother to look for these little (and some not so little) companies who had terrific returns last year. The reason they don't is because everyone is convinced that the stock market is a terrible place to put money.