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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: chaz who wrote (51910)	7/7/2002 8:58:08 PM
From: Seeker of Truth	Respond to of 54805

Chaz, I doubt very much that you have to worry about being left "behind". The stock market doesn't run away. Fine investments will continue to appear from time to time. Indeed I think the only enemy is this feeling. and I get it myself regularly, that stock XXX is THE THING TO OWN and while the present price seems too high, what if it doesn't go down? We need to have a comparative point of view. At this price is XXX as good a buy as YYY at its price etc. Besides, this time around, so many people lost their shirts on tech stocks, surely the advance after the shorts cover will be comparatively sedate. I think it's far more important to buy at a valuation that seems sensible from the point of view of the actual results of the company than to catch it at the bottom.

To: chaz who wrote (51910)	7/8/2002 10:27:40 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 54805

Chaz, At a risk of becoming a yes-man, I agree with Malcolm's answer to you. I do not fear that stock XYZ will run away. Buffett had some baseball metaphor to that effect, which I as non-American do not understand. :-))) I also don't worry that I will not catch the bottom. I just buy cheap stocks in good companies. And it has been my experience that if there are no cheap stocks to buy, it is time to wait with cash instead of being a time to chase expensive stocks. Every time I violated this principle, I got punished. By the way, now there are some good stocks to buy cheaply. More than I have cash. But not in G&Ks. I also dollar-cost-average in my 401(k) on index and value funds, so I am really not afraid of runaway market. I agree that "absolutely knowing the correct price of stocks, or a particular stock" is impossible. I agree that in times like this it is difficult even to narrow down the valuation of a lot of stocks independent of the metric used. For example, I own some EMC that looked reasonable at the time I bought, but it is now lower, yet at the same time more "expensive", less likely to deliver a good return. However, I hope that by being conservative and by selecting the best companies (including G&Ks) I can buy stocks with substantial security and reasonable return. Jurgis - who is not a genius investor by far