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To: LLCF who wrote (161311)	4/22/2002 10:00:45 AM
From: GraceZ	Read Replies (1) \| Respond to of 436258

Buying high priced growth stocks wasn't engaging risk. They paid such a high premium for growth (they saw these stocks as inherently LESS risky that's why they paid up) that it effectively destroyed the return side. Meanwhile the risk that they should have engaged was left sitting there at 52 week lows for the two or three years that it took for the high flyers to blow off. This is not the end of the discussion of course, as a cheap speculation can be less risk-fraught than an overpriced investment Cheap is inherently risky, this is why people demand a higher return to engage it. DROOY at a dollar was unbelievably risky, there were good reasons it was high risk and it was priced according to that risk. The highest returns come from engaging risk.