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

To: Dale Baker who wrote (16229)	1/21/2003 12:37:36 PM
From: Jurgis Bekepuris	Respond to of 78717

Dale, I would never claim that value investing is the "best" way to pick stocks. I believe that "growth" could turn in as good results long term. For example, I believe that G&K investing - though driven to mania in last bubble - could be very profitable (here we go back to MSFT, INTC, DELL, etc. again - they all beat S&P starting from 1980's even after the current bear market by enormous margins). I have some considerations and doubts about "growth" investing: - Large cap growth investing - I still believe we are overpriced in this category. Even though I hold S&P500 index fund and I think that S&P500 is now "large growth" index, I would want to see lower valuations before backing up the truck. I am also not sure how long the globalization and consolidation can drive large-cap growth. At some point there is only KO and PEP in the whole world and they can't really grow anymore. How does one figure out these growth limitations? This is also important to value investors who discuss HD or MCD. - Small cap growth investing - this is an area where one has to know the company and its market very well not to make mistakes and to find "next MSFT". However, if one is correct, the potential profits are enormous. The sector was blown upwards to sky in the bubble, but it has dropped much more than large cap growth (because large cap growth is "safer"?), so there probably are opportunities there. I would like to hear of a good small-cap growth mutual fund if anyone has suggestions (no >100% turnover traders please). One problem with a mutual fund in this area is that it would sell "future MSFTs" once they become midcaps, while a true growth investor should keep them until the eventual XX or even XXX bagger for 10 years or longer. Any ideas how to deal with that? Jurgis