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

To: Dave who wrote (14675)	6/23/2002 8:17:36 AM
From: Dale Baker	Read Replies (1) \| Respond to of 78751

Fine, Dave, I miscontrued the implication in your post. I don't buy the argument that any company in the universe may turn out to be another Enron tomorrow - it's a fashionable sentiment but it doesn't apply to the overwhelming majority of stocks on reputable exchanges. It's a Chicken Little argument. You draw a straight equation between VC firms and MCGC because they both finance other companies. Given there are probably thousands of VC firms and partnerships in the US, it's another assertion that is so broad it is meaningless. Regardless, the issue is always where an investment firm puts its money. I have a small MCGC stake because they invest in a slice of the economy (small media firms) that I want to own right now. They are not so different from ALD in that respect; if MCGC is not a value play then neither is any mezzanine-investment play. If your main concern is whether to step outside the 1-5% return world and take on more risk, you should not own any stocks at all for the foreseeable future, period. The risk level will be too high for you in almost any market. However, your total returns over any longer period like 5- or 10-year increments will be drastically lower than a careful investor in stocks. (I am not talking about playing the indexes or large cap growth fund-type investing, I am talking about careful value investing, so the bubble and crash since 1998 doesn't negate my point). Good luck.