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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (121907)	7/22/2002 2:26:01 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

MM -- The problem we have in communicating is that each of us is using different meanings for the term "perform." If you look at the stock price of QCOM, well, no one would disagree that it's a dog. But if you look at the earnings (which will be confirmed later this week), it is simply outdistancing its competitors. You can't find many telecom equipment stocks that are doing better these days, but QCOM appears to be one of them. As to index stocks, the problem I have is that none of the so-called efficient market theories use a database that is truly representative of the universe of stocks, or even some subset of the universe. Therefore, the conclusions drawn about index funds doing just as well, if not better over the long term than individual stocks, on the grounds that on average you can't beat the market, are just a lot of horse manure: The sampling procedures are terrible. The data is incomplete, and therefore, conclusions cannot be generalized. It's hard for economists to believe this, since economic models tend to simpify reality. But for those who've been in the market as long as I have (nearly 50 years), it's easy to see that the efficient market theory does not really help explain what makes a good investment. Art