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

To: Don Earl who wrote (14624)	6/13/2002 2:17:50 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78717

Don Earl: I don't understand if you are talking about investing or trading or both. Regardless, for every example you may cite about your rules for avoiding what you call bad investments, I can cite one in counterexample. As you say, many of us here have been investing for many years. Sometimes profitably. Others have been on this thread for several years. Consequently, I am guessing at least some of us have come to the conclusion that there are many investing styles, just as there are trading styles: some work sometimes, and some work better than others based on individual preference and abilities. "Bad investments" is situational and not absolute, in my opinion. Thanks for bringing forth AMD. It looks like it might be a fit for me; I'll look closer. (Your brief mention doesn't seem to be congruent with your previous post wherein you seem to want to see evidence from others who post here of more getting back to basics and "solid research" for their picks. -g-)

To: Don Earl who wrote (14624)	6/13/2002 4:52:51 AM
From: Dale Baker	Read Replies (3) \| Respond to of 78717

To generate a 300% return in one year, you have to take a risk profile that value investors would never take, period. And I wasn't clobbered in previous years - so your 300% may just be regaining ground you lost as a trader in recent years. My last losing year in the markets was the mid-90's when I still let a broker mess up my accounts. I am up well over 200% since then thanks to a fat year in 1999 and decent defensive play in other years. If you manage your portfolio for steady gains and avoid major losses, a steady increase will outperform the boom-bust trading cycle in most cases. The majority of traders I have seen go through periods where they lose significant amounts of their capital. Most value investors do not. Just ask Warren Buffett. If you weren't on a hot streak at the moment, I doubt we would be having this conversation at all. Everyone has their own approach. I am glad yours works for you. I couldn't sleep at night putting the majority of my net worth on the line like a craps game.